Its Not the Oil (Revised)

Don’t complain to me about the price of oil. Its not the Oil. Look at the following headlines:

From Yahoo News Friday – Dollar falls below parity vs Swiss franc

Also from Yahoo BIZ News – Dollar Drops on Trouble at Bear Stearns AND  – Dollar’s Clout Sinks Worldwide.

Then this from Bloomberg –Crude Oil Rises to Record $111 in New York on Weak U.S. Dollar

NOTE: I did not put in the links because for some reason they were causing an IE fault – search the headlines for the articles.

Anybody need help connecting the dots?

In 2000, 42 gallons of Saudi Sweet (the standard) was selling for 27 dollars.  That same 42 gallons of oil sold yesterday for over 110 dollars.

Look at the price of gold during the same period… $279.11/oz January 2000.  Friday gold was at $1001.70.  That’s FOUR TIMES the price in 2000. Oil was at $27 in 2000?  Today it was at $110.00 on the spot market.

Hmmmmm… That’s about FOUR TIMES the 2000 price.

Like I have been saying, it’s not oil.

Tell your congressman stop deficit spending. Tell them to become responsible adults for a change and FIX THE PROBLEM.

How about setting a benchmark at $1000 an ounce and returning to the Gold Standard.

Opps! We can’t afford that… At $1000 per ounce we already have more debt than we have gold in reserve.

Because of unbridled spending by both political parities, we have a falling or shrinking dollar.  I don’t know what the experts call that.  I call it runaway inflation.  The shrinking dollar drives up the price (or cost to us) of oil and that drives up everything else.  What would you call it?

NOW is the time to cut the purse strings in Congress.  Now is the time to hold our representatives accountable for the mess we are in.  Call your representatives tomorrow and ask them what they are doing to stop the shrinking dollar.  Don’t let them tell you they are spending their way out of trouble.  Spending is how they got into trouble in the first place.

I am looking for a person who can make bumper stickers  “STOP DEFICIT SPENDING NOW!!”  and  “Give us our 100 cent Dollar Back”,  or,  “Its the DOLLAR Stupid!!”

To coin (pardon the pun) a phrase…. “What America needs today is a good five cent nickel.”

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Published in: on March 16, 2008 at 9:35 am  Comments (4)  

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4 CommentsLeave a comment

  1. Responsible adults,fix the problem,I have to agree with you 100% but if they did what was right that would not allow them to control the population and would put the wealthy in the soup line and we who are in the soup line today would end up where the wealthy are now we could not have that could we?

  2. David,

    I agree, this would seriously reduce the power of congress to manipulate the public. I don’t think that would be a bad thing. As to soup lines , I am not a participating member nor do I intend to be. I have changed my spending habits as a hedge against what might come of all this.

    Also I do not see how reigning in and out of control congress would make the richer people poorer. A rising economy is like a rising tide, it raises all boats. The best way to raise the economy is to reduce the size and scope of government. Let the free enterprise system do what it does best, create wealth. Not just wealth for the big guys, but for everyone. Don’t believe me? Look at the first 100 years of this nation. Sure there were several families that became VERY wealthy, but there were far more who came from poverty to affluence in their working life. In the early 20th century one household out of five had a domestic servant. That’s affluence. Can you say that today?

  3. Well I probably should have worded it differently and and soup line was not meant literally what I meant was that a shift in power would increase the poor and working classes wealth by some what limiting the wealthy’s income and or forcing them to share the worlds wealth rather than hoard it like they are doing today,

  4. I firmly believe what is driving the middle class into extinction is the taxes they are required to pay. Not any corporate plot.

    The mismanagement of the monetary system since Woodrow Wilson put us in the place we are today. The teaching and philosophy of J. Maynard Keynes (deficit spending), allowing our grandchildren to pay for our purchases has to stop. It will take a complete overhaul to return a booming prosperity and restore the middle class as prominent feature of this country.

    The major abusers?

    Wilson, Roosevelt, Johnson, Carter and yes… G.W. Bush.


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