posted on Jul, 30 2009 @ 01:12 PM
Oil is traded in Dollars, and has nothing to do with a Currency Basket or the Saudi currency.... only to do with Dollars.
The Dollar, from 2001-2008 was deteriorating the fastest and furthest since the onset of the Reserve Currency. This was due to low industrial output,
trade deficits, massive spending deficits (wars) and the massive inflation caused by sky rocketing equity from real estate.
What tanked the economy was wages did not expand, but the cost of living did. For every Dollar a family's income grew, $10 were added to expenses..
eventually debts began defaulting as wage growth was overtaken by inflation, resulting in mortgage collapses.. which resulted in restrictions of
credit as banks CDO/CDS obligations crippled their investments, thus, reserves, limiting the amount available for credit expansion.
The price of Oil had a huge part in destroying the family's expendable income, but that all had to do with Government policy resulting in the
collapse of our currency.. Had nothing to do with Saudi Arabia.