inverse meaning the price of oil has been rising (especially in the last year) as a direct opposite to the value of the dollar against the CAD and the EUR.
watch the ERU/USD pair and the value of both Oil and Gold. on days Oil and Gold go up, the value of the Dollar goes down.
traditionally the value of the USD has been tied to the TBill.
This commodity thing is new.
really it isn't mysterious. It shows that people are moving their dollars to vehicles they feel are safer like Gold and Oil and soybeans (commodities).
the thing to watch is, will the money come back to the dollar?
Record deficits...
Runaway spending...
Nobody feels safe with the dollar now.
That is the problem.
Our dollar is based on nothing so the only value it holds is the value of trust. When people trust it as a stable currency then it holds value. When trust is not there there is nothing else to give it value.
And... when the dollar goes down... the prices go up.
That is basic economics. If what I am bartering for products loses value then it takes a greater quantity of those items to gain the same amount of product.
When the dollar loses its value it takes more of them to buy a gallon of gas or a barrel of oil... or an ingot of gold.
Record deficits...
Runaway spending...
Nobody feels safe with the dollar now.
That is the problem.
Our dollar is based on nothing so the only value it holds is the value of trust. When people trust it as a stable currency then it holds value. When trust is not there there is nothing else to give it value.
And... when the dollar goes down... the prices go up.
That is basic economics. If what I am bartering for products loses value then it takes a greater quantity of those items to gain the same amount of product.
When the dollar loses its value it takes more of them to buy a gallon of gas or a barrel of oil... or an ingot of gold.
we agree on record deficits and runaway spending.
we dont agree that the dollar is abased on nothing. It is based on the American Economy.... which is loosing ground right now for sure.
But I suspect that fairly soon you will see a shift in attitude from the Europeans. They dont want the Dollar to move too far down. it hurts their exports.
I also suspect, keeping the Dollar close to the CAD is also something everyone wants.
__________________ If I do something stupid blame the Lortab!
we agree on record deficits and runaway spending.
we dont agree that the dollar is abased on nothing. It is based on the American Economy.... which is loosing ground right now for sure. .
Well... what I mean by backed by nothing is that there are no precious metals backing the dollar.
In the past the dollar was a certificate that representing a holding of actual intrinsic worth somewhere. Those paper certificates were redeemable for actual precious metals.
Now the dollar is only backed by trust... which is exactly what you said. You stated "It is based on the American Economy... exactly... it is based on the trust of Americas economy. As that trust wanes so does the value of the dollar.
Why is it based on the trust of our economy? Because there is no intrinsic value of any kind behind the dollar (not even fractionally) and so all there is left to lend any value to the dollar is a robust American economy.
So... your statement and my statement of different wordings of the same statement IMO.
Right now, as we post, there is an 8 mile long line of truckers in Washington DC, protesting the price of fuel. I wonder if it will make a difference? Somehow, I doubt it. Do y'all think the price of fuel will be this generation's version of the Boston Tea Party?
Doubt it. We need to do our dead level best to develop alternative fuel sources (hybrid, electric, and hydrogen engines).
__________________
"For I know the plans I have for you, declares the LORD, plans for wholeness and not for evil, to give you a future and a hope." Jeremiah 29:11 (English Standard Version)
my friend if that were going to happen it should have happened a long time ago, we fought a war to establish this country over a half cent per pound tea tax, doesnt sound like much, the average person pays over 40 percent of earnings in taxes, some of us more, good night enough is enough and the dems promise to raise them higher, yeah that will help, not, lol,dt
The American people don't mind paying taxes if they feel they're seeing results. For example, I don't mind paying taxes to sustain a police or fire department. I don't mind paying taxes to support the maintenance of roads and highways. It's about results. The founders waged a war over taxes that did little but bring windfall profits to the British Empire, the benefits of which they would never see.
The Democrats aren't planning on raising my taxes...I'm middle class and already pay MORE than my fair share.
__________________
"For I know the plans I have for you, declares the LORD, plans for wholeness and not for evil, to give you a future and a hope." Jeremiah 29:11 (English Standard Version)
Something like what you are describing was attempted earlier this month. The problem was that it wasn't a very organized protest. Eight miles of trucks is a significant number of trucks, especially when they are all blowing their horns. What I think needs to happen is that the US needs to stop depending on foreign oil. I read that, just in Alaska, we have enough oil to support our needs for at least 100 years.
That's interesting. Where did you read that? I heard we have 3% of the world's oil on our soil.
__________________
"For I know the plans I have for you, declares the LORD, plans for wholeness and not for evil, to give you a future and a hope." Jeremiah 29:11 (English Standard Version)
Doubt it. We need to do our dead level best to develop alternative fuel sources (hybrid, electric, and hydrogen engines).
I agree that we need to do more to develop alternative sources of fuel. However, something I never hear anyone talking about is what the increased demand on, say the electric grid, would do to the price of electricity, should we go that route. Or, if we go the route of hydrogen fuel cells, what will that do to the price of natural gas (Honda is working on home fueling stations as we speak). Even if they were to develop a car that runs on water, what will happen to the price of water when everyone is driving a water powered car? It seems to me that we will simply be shifting the burden to another already stressed resource, unless we come up with a truly new source of energy.
The American people don't mind paying taxes if they feel they're seeing results. For example, I don't mind paying taxes to sustain a police or fire department. I don't mind paying taxes to support the maintenance of roads and highways. It's about results. The founders waged a war over taxes that did little but bring windfall profits to the British Empire, the benefits of which they would never see.
The Democrats aren't planning on raising my taxes...I'm middle class and already pay MORE than my fair share.
Your wrong on this.
__________________ Never burn the bridge of mercy... You never know when you will need it to cross.
Doctrine makes a wonderful servant but a horrible master!
That's interesting. Where did you read that? I heard we have 3% of the world's oil on our soil.
I don't remember where it was that I read it. I spend so much time reading this and reading that that it sometimes makes it hard for me to remember where it is I read things. I can tell you that, more than likely, it was via Yahoo news. That's where I get the bulk of my news from.
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