Oil

Out of context: Reply #9

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  • johndiggity0

    the dollar is not really pegged to oil, but when the price increases, transportation costs increase, and companies compensate by raising their prices to reflect the extra costs. they pass this on to consumers.

    the big problem is that the dollar has been declining, so it buys less oil than it use to. compound that with speculation (which is really what the dollar is pegged to: emotion of investors) and that's where we are now.

    • that is all I was really saying.mrdobolina
    • the problem in the time mag article is liquidity among the speculators. they don't have to be able to cover their betsjohndiggity
    • when they buy oil futures. so people are using this as a get rich quick scheme, like day trading.johndiggity
    • also if we didn't have to import our oil, the rise and the fall of the dollar wouldn't impact the price nearly as much as it does.johndiggity
    • de-regulate de-regulate de-regulatemrdobolina
    • all the talk about drill here drill now doesnt tell you that oil will go into the world market.mrdobolina
    • and not stay here. and it apparently isn't supply and demand.mrdobolina
    • but it's better (for the us) to be exporting oil than importing it.johndiggity
    • it doesn't matter as far as prices go.mrdobolina

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