Is it oil or the dollar
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Published March 10th, 2008
The Daily Press reports Virginia gas prices at their highest point in history ($3.15), as crude oil hits a new high ($105), but was Ron Paul right? See the chart here
That’s from this Wall Street Journal article, saying that it’s really the falling value of the dollar that’s driving these high oil and gas prices.
“what would have happened if the dollar had simply kept pace with the euro in this decade. What would oil cost today? Not $100, but closer to $57 a barrel.”
Ron Paul said as much during the debate, and no one really engaged the idea, but the question remains. Is there an oil or energy crisis, or is it simply the case of a falling dollar value?
No one engaged Paul because his premise is mute. There are no linked currency’s here or commodities, so lets say, if a dollar purchased 1/33 ounce of Gold in 1972, what would it be worth today. WOW Ron Paul, I am rich. Thanks for make believe and the $20 million you sucked from people. Good luck in your defeat on re-election. What a waste and people like this site thinking it was gospel — from Paul no less. Barf.
If you are going to comment on what or what not this site believes, please have the courtesy to read it regularly. Thanks!
Two problems with the theory:
1. If the dollar strengthened, do you believe Oil would drop to $57?
I don’t think so.
2. With prices as high as they are, nearly everyone is running at 100% of production capacity. Therefore, only a new strike would bring a larger supply onto the market to force prices down.