Econ 101 for Rwingnuts

LaWood · Post by **LaWood** » Mon Apr 28, 2008 8:30 pm

As I've tried to explain to wackos for several years, when the USD falls in value the price of oil soars. Here it is from the horse's mouth.

Chakib Khelil does not rule out oil prices reaching $200 a barrel, even though supply is adequate, because the market is driven by the dollar's slide, Algerian government newspaper El Moudjahid reported on Monday.

Khelil, a former World Bank official, is also Algeria's Minister of Energy and Mines.

He added: "The prices are high due to the fact of the recession in the United Sattes and the economic crisis which has touched several countries, a situation which has an effect on the devaluation of the dollar, and therefore each time the dollar falls one percent, the price of the barrel rises by $4, and of course vice versa," he was quoted as saying in brief remarks to journalists on Sunday.

He added that: "If this (the dollar) strengthens by 10 percent, it is probable that (oil) prices will fall by 40 percent."

NYT
via Reuters
Published: April 28, 2008

Filed at 5:59 a.m. ET

Post by **Dardedar** » Mon Apr 28, 2008 9:07 pm

DAR
But LaWood, haven't you heard? GW Bush and his republican administration have a "strong dollar policy."

Let's have some pictures for those who might be more visually oriented:

Here is the dollar vs. euro:

And another pic:

This one picks up where that one left off:

DAR
And I learned something new today. The European Union has now surpassed the US in GDP. Funny we didn't hear a lot about that in the news eh?

D.

LaWood · Post by **LaWood** » Mon Apr 28, 2008 11:18 pm

The European Union has now surpassed the US in GDP.

and if you were wise enough to buy Euros back in 04-05 you have made some real money. Problem is those Americans who bought Euros are now fearful of exchanging them.

USA should be in a full scale depression by 2010 or perhaps before. Get a good garden tiller if you like something other than dry goods or canned meat.

Tony · Post by **Tony** » Wed Apr 30, 2008 8:36 am

This recession could be a doozy. This has been coming for a while. Capitalism has been in crisis mode, relatively speaking, since the mid 1970's (low growth, high unemployment now termed "strong economy"). This is just the denoument. Get used to not being #1 folks. It's China's Century.