posted on Jun, 8 2008 @ 05:27 AM
so just Why is the USD plummeting in relation to oil?
one reason is that OPEC is pegged to the USD
and most every OPEC country is experiencing 10% or greater inflation...
but the USA Treasury/Labor Depts say core inflation & CPI is under 3%
for the last 8 years of the administrations claims & accounting.
the dollar is becoming more worthless because the Federal Reserve has lowered rates to 2% making something of a American version of the Japan 'Carry
Trade'... the bailed out investment banks are using the Federal Funds funny money tomake hedge profits on long oil...
instead of making their balance sheets stronger with domestic lending, etc
the USA is pretty much alone in the series of rate cuts, (making money less valuable as a result) as many in the EU are no longer following the US
central banks lead.... they are keeping their economies rates steady.
several of the Gulf States Cooperation are in a 6 month process of 'de-pegging' from the USD as of last weeks announcement -> Qatar and UAE Abu
Dhabi, are dropping the USD and will be accepting a basket of other currencies as payment for product...Saudi Arabia is at least one year away from a
similar 'de-peg'...i think that information finally sank in, and that's why OPEC oil jumped $10.00 barrel [unexpectedly?]
the iraq invasion
the contrived Housing & Credit bubbles
the series of fed rate decreases
the bailout of the banker elites at the expense of taxpayers
have all combined to make the USD worth about 70 cents in relative terms
~and it is expected to decrease to somewhere near 55-65 cents over time~
which translates to a further 10-20% devaluation of the USD overseas
domestically, the US mint(s) have ceased minting the walking liberty silver coin... or at least ceased selling these 1 oz silver coins to their
perferred list of distributers across the nation.
I remember when one could go into any bank and exchange your paper bills for intrinstically valuable US coins.
but since then, the coins we use have litttle valuable metals in them, and any minted coins are sold to dealers so they can profit from
is that soviet, fascist, mutated capitalism or what ??