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To: Man50D

As long as the Fed keeps too many dollar in circulation, and as long as oil is traded in dollars, and as long as the Fed keeps lowering interest rates trying to avoid inflation, fuel prices will remain high. OPEC will see to this because they are paid for their unearned bounty in dollars and as long as dollars aren’t able to buy the goodies the Arabs want in Europe, they will short the supply of oil on the world market to keep the price up so they can buy more “stuff”....


6 posted on 03/08/2008 4:11:00 AM PST by Thermalseeker (Silence is not always a Sign of Wisdom, but Babbling is ever a Mark of Folly. - B. Franklin)
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To: Thermalseeker
As long as the Fed keeps too many dollar in circulation, and as long as oil is traded in dollars, and as long as the Fed keeps lowering interest rates trying to avoid inflation, fuel prices will remain high.

The speculators have ignored and your scenario ignores the law of supply and demand That can't go on indefinitely. At some point supplies become so large that producing more gas will only exacerbate the situation. Producers will be forced to sell increasing supplies asap. That can only be accomplished by reducing prices considerably.
9 posted on 03/08/2008 4:19:36 AM PST by Man50D (Fair Tax, you earn it, you keep it!)
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