Sunday, July 20, 2008

A Week of Oil Charts #2

A troll once wrote in, "well how do you know that it's the value of the dollar that's affecting the price of oil."

And if you think about that question, it is one of those genuinely stupid questions out-come-based educated kids will ask, thinking there is no such thing as a stupid question. Because the question answers itself.

Yes, the value of the dollar or any currency will affect the price of things, especially if you're importing it. So to, again, advance our basic economic understanding of why gas prices are so high, one of the main reasons is the value of the dollar has dropped, thereby necessitating more dollars to buy that same barrel of oil compared to other currencies;


The interesting thing about this, is in addition to Nancy Pelosi and the democrats continuing to do their best to keep oil prices high, the left is also indirectly to blame for high oil prices in that what they do for careers does not help the value of the dollar.

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