monty wrote:
Johnnie wrote:
http://finance.yahoo.com/currency/conve ... amt=1&t=5yI'm glad to hear $3.00 a gallon gas & heating oil doesn't affect americans and catapiller and boeing can't raise their prices when they sell to china or can farm products be exported to china at higher prices and lee Wangs can't tell a gringo, no $1 dollar, Lee now charge $2 dollar.
The increase in oil and gasoline prices is due to issues related to supply and demand, not to the declining value of the dollar. High demand around the world and inability to rapidly increase production are the two biggest factors. Political uncertainty in the Middle East adds a bit to every barrel, and possibly speculation/manipulation of markets by some shady characters.
The Chinese Yuan went down slightly because the Chinese government decided it would go down. That exchange rate does not float freely. The great President Bush didn't have anything to do with that adjustment ... the Chinese acted in their own interests. You can try exporting farm commodities to China at any price you want, but if you try charging more than the market rate for an undifferentiated commodity, you won't get far.
Dollar weakness has boosted the price of dollar-denominated commodities and helped oil to surge by more than a third since the middle of August.
http://www.econbrowser.com/archives/200 ... wea_1.html
The chiness government decided it would go down because our dollars aren't worth as much. They need to buy raw materials from other countries and pay their international bills and when some guy in Pakistan says no take $2 crappy us dollar for computer work, want $3 and the Prince of Oil tells the chinaman no $60 us dollars for oil, you pay $90 or go back to being rice farmer. If their currency is tied to the US currency it devalues right along with it.
So The Great President George Bush has forced them to adjust the value of their currency or it devalues right along with ours.
Americans income isn't rising to keep up with energy costs, people are squeeling like stuck pigs, so long term we will reduce our dependency on imported oil because we just can't afford to run over 100 million SUV's or heat the 200 year old drafty farm house in maine.
Comrade Clinton didn't care about long term effects, he just wanted to look like a hero. Now America is paying the price for cheap oil in the 90's.
Stupid people bought SUV's and giant houses 50 miles away from their jobs during the 90's.
11 Feb 2008, 9:14 pm
