ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Friday, March 07, 2008

Enough with the Rate Cuts!

Crude oil closed at about $104 yesterday. Holy smokes! Had enough?

There is one very good reason for that. Oil is priced in US dollars. The US dollar is in freefall. Truth is, in "real money" oil does not cost all that much more than it did 20 years ago. The dollar goes down 25%, oil goes up 25%. It's not rocket science. Of course at the same time there is increased demand from places like China and India, but the immediate offender here is the falling dollar.

Interest rates at their current low level in this country are not sustainable. Yes they bail out the few, such as folks who took mortgages that they never should have taken, but at what expense? We are heading for hyperinflation if this is not stopped very soon.

We need to stop focusing on bad old OPEC and take a look much closer to home.

Your Co-Conspirator,