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To: Happy Rain
Dollar worth less,oil worth more. Sans domestic drilling of our more than adequate reserves the out of control printing of greenbacks that are financing Obama’s socialist destruction of capitalism in America will force us all to drive high mileage death traps.

The tremendous lack of knowledge of economics that you reveal in this statement is remarkable. It is hard to know where to start. The first statement is perhaps the silliest. Perhaps look up the meaning of the word "fungible" with regard to the second part.

7 posted on 06/10/2009 3:11:26 AM PDT by Einigkeit_Recht_Freiheit (I am not surprised by what Obama is and to more than a little extent we do have Bush to blame.)
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To: Einigkeit_Recht_Freiheit

The first sentansce isn’t so ridiculous. Dollar worth less = inflation. Inflation = higher oil prices even if everything else remains the same.

Last month the domestic supply of oil/gasoline was high indicating that demand is still depressed. It’s probably safe to assume that supply issues aren’t driving the cost of oil. If supply issues aren’t, then what is? Of course some of it is related to the weakening dollar, but over the last couple of weeks the prices don’t seem to be moving in tandem.

The price of gold is headed downward. It could be that some are cashing it in and going back to commodities hedging, thinking the economy will be recovering soon and supply issues will once again be the main driver behind prices.


23 posted on 06/10/2009 5:06:19 AM PDT by dajeeps
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