Oil and the Dollar

[tagryn]

An interesting article from the WSJ on why high gas prices may be more the result of a weak dollar than lack of oil. Good graph, and here's the summary paragraph:

The larger danger here, as we've been warning for some time, is that the U.S. seems to be returning to the Carter-era economic policy mix of tight fiscal policy (tax increases) and easy money. Add barriers to oil and natural gas production and you have a recipe for higher oil prices and slower growth. In a word, for stagflation. The Reagan-Volcker policy mix of the 1980s changed all that, but maybe we have to relearn the hard way every generation or so what works -- and what produces $100 oil.

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[foomf.livejournal.com]

In other Wall Street Journal news, Water has been discovered to be Wet, and Fire has been determined to be Hot.


We're not out of oil yet. There's another two decades before that happens, given the current supplies, and if someone gets a clue and starts using the modified Bessemer process that's been developed to make just about ANY hydrocarbon waste into oil and gas, there'll be no particular shortage at all, especially with the new "biofuel from algae grown on sewage treatment" technique.