Oil Skyrocketing? No! USD Plummetting!

I tell people this all the time. It's not a difficult thing to grasp really, but I'm usually met with a blank stare.

Nope, oil prices aren't going up that drastically. It's the fact that it's measured in terms of the US dollar and its value is going down drastically.

The higher price of gas were paying now in the US is a nice distraction to the fact that the dollar is down the tubes. Everyone is worrying about the price of gas and what to do to bring it down. In reality a change in our monetary policy is more important than digging for oil in ANWAR (which I think is important too).

Good thread! This is an important fact people need to realize.

Edit to add: I just watched the Ron Paul video. He took Bernanke to freakin task. I wish we were calling him "Presumptive Nominee".

[edit on (6/7/0808 by PistolPete]

Well there does seem to be some lag, but there is a very stong correlation even in the chart you referenced. Oil creeps in to the price of everthing, and the falling dollar inflates the price of everything imported, which is just about everything we buy. Real inflation numbers are way, way higher than the government reported inflation numbers. It will probably get much worse before we are provided with some miracle solution to the problem by the government. Beware of the miracle solution, because we will loose a lot in the deal.

reply to post by Karlhungis
Simple Karl,the elites want the USD to crash because not only will they be able to push the Amero on us they will then have the perfect excuse for inacting marshall law and all of the population control measures they have been planing for.

Originally posted by mike dangerously
reply to post by Karlhungis

 

Simple Karl,the elites want the USD to crash because not only will they be able to push the Amero on us they will then have the perfect excuse for inacting marshall law and all of the population control measures they have been planing for.

Yeah, although the U.S economy is not doing as bad as once thought, with the rebate checks that were handed out to help people stay in business. I guess it'll stay steady up until the right time until some disaster occurs then the economy will be at rock bottom again... Maybe even further than rock bottom. Which will then devalue the money even more from all the spending and printing. I will be ticked off if they introduce the Amero into Canada, I'll forgive them if the banks can convert the money that I saved up, into the same value as the Amero.

the rebate checks is just another small bandage for a large open wound. It will cover the wound but eventfully the blood will gush once again. This stimulus plan is really a joke if you want to see a real stimulus plan check out what Mexicos government did for thier people. Ill take tax breaks on everything over a 300-1200 check anyday.

This is something I have been trying to get everyone I know to realise for so long now. It is becoming easier and easier to connect the dots but far too many folks still aren't doing that.

Accidental double post.
[edit on 7-6-2008 by Asmus]

[edit on 7-6-2008 by Asmus]

What happens when everyone outside Washington finally sees what's coming, and stops buying Treasuries (i.e. Federal debt)? Do members of Congress wean themselves off the credit sow, or do they finally Do The Big One and just print whatever money they want (thus completely screwing the economy).

Then again, this is the same Congress that won't let America develop (explore, drill, mine, etc.) her own energy, forcing imports via a dollar Washington is making worthless. Brilliant.

Maye those radical threads about bullets-as-currency aren't so far-fetched...

Originally posted by Anonymous ATS
What happens when everyone outside Washington finally sees what's coming, and stops buying Treasuries (i.e. Federal debt)? Do members of Congress wean themselves off the credit sow, or do they finally Do The Big One and just print whatever money they want (thus completely screwing the economy).

Then again, this is the same Congress that won't let America develop (explore, drill, mine, etc.) her own energy, forcing imports via a dollar Washington is making worthless. Brilliant.

Maye those radical threads about bullets-as-currency aren't so far-fetched...

No one will stop buying Treasuries, the question is what will the interest rate be...when you don't buy as many treasuries it pushes the yield up...which makes them more attractive...the system is pretty sound. The higher the yield becomes, the stronger the dollar will become as well. I am a Ron Paul supporter...but I must say so many people are blowing hot air and don't understand fiscal and monetary policy to save their life. The Federal Reserve does not set interest rates, they set the target rate...the only rate they control is the "discount window"

[edit on 7-6-2008 by yellowcard]

So if these graphs are accurate how is it that canada is being effected? We have more then enough oil in alberta, and unfortunately also pay quite the price in the same province that its being extracted from... perhaps its an effort of refining it in the states, im not sure, but ya...

EDIT:

but ya... right annoying... lol

[edit on 7-6-2008 by Spock Shock]

reply to post by Spock Shock


I'm not sure how many refineries there are in Canada, 2 in Halifax and I'm sure Irving would have at least one in NB. And we're still paying about $6/gallon.

About 70 percent of oil used in the US comes from North America.

So if the oil price is being based on it's international value, then no wonder the oil companies are making outrageous profits.

What really burns me is that much of the oil belongs to us. The citizens of North America. They are being allowed to extract it from public lands and sell it back to us at inflated prices. This is an outrage.

Since 1930 oil has been purchased internationally with exclusively with the US dollar. So there is no wonder our economy is being destroyed. The dollar has been on the oil standard since it came off the gold standard. We are fighting wars to keep it pegged to oil. And it has been unpegged here at home.

reply to post by Choronzon



Yes,...someone who gets it!!

If we had been using gold to buy our gasoline, we would have simply noticed the price of gas fluctuating within the typical range for the last 11 years including now. Many people consider gold to be equivalent to international currency.

See the chart.
pricedingold.com...

If you hear an economic forecast that predicts both gold and oil to decline, then to take back off again after the decline, it all makes sense. Now if someone can tell me what the price range for oil would be if gold falls all the way down to $600 to $750 an ounce, I might decide to make some bets when I see the trend develop. Markets move in waves instead of straight lines but the correlation between oil and gold seems to have remained pretty steady so far.

reply to post by Choronzon


The oil barron croonies, with their last ditch gamble - the Iraq War, are calculating at best ... America would be able to secure the region and steal it's oil to keep things afloat!

The plan was to kill three birds with one stone (Rid Saddam, leash
Iran & passify Isreal) all with a bigger agenda in mind... to control the largest oil fields, and emerge as the worlds energy "puppet masters."

They had no idea the economy was going to "hell in a hand basket" as quick as it did! America has spread it self too thin

reply to post by yellowcard


The federal reserve are a private bank they set the cost of the US government buying money off them.
Which when the government is forced to pay it back cause hyperinflation.

Lots of stats on that on ATS. just search for Federal reserve

Originally posted by orionthehunter
If we had been using gold to buy our gasoline, we would have simply noticed the price of gas fluctuating within the typical range for the last 11 years including now. Many people consider gold to be equivalent to international currency.

See the chart.
pricedingold.com...

Interesting chart, looks like it's averaging around 130 or 140 mgAu/gal, with two spikes above 200, one in 2001 and another in 2005. Current price by that data is 140, which is cheaper than mid-1999. More than a little fluctuation there, though.

Strange, considering that gold and oil are both limited resources, but oil is a consumable whereas gold is not.

Looking at this chart alone, it would seem that the whole 'peak oil' thing is untrue -- of course, there's lots of other data and information contradicting that conclusion!

Anyone know the accepted economic reasoning on why they track so well?

deleted.

[edit on 8/6/2008 by moniker]

I see bargains US companies, and I'm snapping up cheap shares ready to expload then sell them, take my money out of the US oh and I don't pay any US taxes and on top of that I am shorting a bag load, more profits at the long holders expense

Tax free profits for me


Lubly bargins!




[edit on 8-6-2008 by mOOmOO]