How many new dollars have entered circulation with QE2 and how does that compare with the total amount of dollars in circulation?
Does that fractional increase of dollars in circulation track the general price inflation?
What is the general price inflation? Is it the CPI, which only increased .1 percent lately?
What fraction of the price increase in oil comes from monetary inflation? What fraction for demand?
Assuming that most of the price increase in oil comes from monetary inflation, what causes the monetary inflation to affect oil more than other products?
What demand is increasing? We have 10% unemployment and we are the main consumers of the world.
For one thing oil (energy) and food are hedges against future dollar devaluation because everyone expects them to go up the highest as before. So they are the canary in the coal mine. They will be consumed as the prices rise.
Under Bush it was energy, food and housing too, but the housing bubble truly caused an long term over-supply of that unlike food an energy.
Remember that the fed is trying to devalue the dollar