http://kirkcaraway.com/14/03/2008/oil_prices_and_the_dropping_dollar Comments for "Oil prices and the dropping dollar" en http://kirkcaraway.com/14/03/2008/oil_prices_and_the_dropping_dollar As gas skyrockets toward the $4 range, it's interesting the note that the <a href="http://en.wikipedia.org/wiki/Oil_price_increases_of_2004_and_2005">current hike in oil prices</a> is unlike the others we have seen over the past few years. Since the Iraq war started, prices have shot up from time to time dependent on external events, be they worries about the war, possible actions against Iran, Turkey's conflict with the Kurds, Israel's invasion of Lebanon, even Hurricane Katrina. But since the beginning of 2007, the rise seems more related the falling dollar than any other factor. The Euro used to be worth only 80 cents, but now is trading at $1.50. Since oil is priced in dollars, this has led to record prices above $110 a barrel. The reason for the dropping dollar is that the world has finally caught onto the Bush ponzi scheme, where the U.S. just keeps borrowing money, and they don't trust us to pay it back. Unlike the externally driven events, don't expect oil to drop in price again soon, if ever. http://kirkcaraway.com/14/03/2008/oil_prices_and_the_dropping_dollar#comments economy Fri, 14 Mar 2008 13:56:10 -0700 kc 604 at http://kirkcaraway.com