|
Re: Oil hits $114/barrel - No end in sight.
The weak dollar does contribute somewhat to the price of oil but not as much as the OP would have us believe. Sure the dollar is weak today but is it worth 5 times less than it was 15 years ago? I think not. Not to oversimply it too much but one of the major driving forces is speculation among commodity traders. They are driving the prices higher in anticipation of future supply and demand. (it's not based on last years numbers Americano) Old news doesn't drive commodity prices. Perception is reality in those markets. Liken it to the real estate speculation in California that has proven to be a disaster for homeowners and lenders. Is there an end in site? Probably but who knows when and how much worse it will get before the bottom falls out.
But these high oil prices only make alternatives more economically viable. You liberals should be rejoicing at Bush's feet (since you blame him for this) for making it possible for the new "high tech energy" jobs to become a reality.
__________________
American by birth.
Conservative by the grace of God.
|