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To: Oberon

Are you stating that there would be no inflation with the Gulf state currencies if they were pegged to the Euro or Pound, or that there would be inflation, but less.


40 posted on 02/26/2008 3:54:03 PM PST by DeaconBenjamin
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To: DeaconBenjamin
I'm saying that the rising cost of oil in dollars is not only a function of increasing demand for oil... it's also a function of a decreasing demand for dollars. That is why these Gulf nations, whose currencies are pegged to the dollar, are experiencing high inflation even though they have almost entirely oil-based economies.

I know so little of the Euro and Pound that even I am aware of my ignorance, and so I won't dare comment on them.

41 posted on 02/26/2008 7:47:29 PM PST by Oberon (What does it take to make government shrink?)
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