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.