Far from it - we also have a lot of other financial issues that are affecting our economy right now. And taking control of Oil Fields would raise the bidding price of Oil on the World Markets!!Do you believe that the price of oil/crude is the prime factor for the present crisis facing the us dollar.?
I think you have it a little backwards. Inflation and foreign debt are the biggest contributors to the decrease in value of the U.S. dollar. It is this lower value of the dollar that causes us to have to pay more for a barrel of oil. Our money today is worth less to the seller than it was yesterday. Of course they will want to charge us more. They're in the business of making money -not charity work for Americans.
The most effective way to drive down the price of crude oil is to drastically decrease the global demand. This is something we are unable to do. Sure we could drill in Alaska and get all the oil we need for decades. But that would only be a temporary fix for our demand. We would still have to deal with inflation. We would still have to pay for the cost of production and the high government taxes per gallon at the pumps.
The sad truth is that we need painfully high prices at the pumps to motivate us to work toward a lifestyle that is in no way dependent on oil. We already know we need to switch over to alternative energy sources. But we have thousands and thousands of Americans whose lives are invested in the oil business. It is a difficult transition and will only be more difficult as inflation hurts our pocketbooks day by day.
Its not the oil, and it isn't the trade deficit either, or the loans from other countries, although that is getting closer to the truth, its the increase in the money supply through the FED policies. That's what's being inflated when you have inflation, the money supply.
Part of the recent increases of the price of oil is this currency inflation, part of it is the war itself.
Oil has nothing to do with the value of the US Dollar. The Dollar's decline is a result of us running a yearly account deficit and a trade deficit.
In layman's terms, we borrow to pay out bills and we exchange our wealth for widgets overseas. In time, it makes the USD worth less and less. As a result, commodities like Oil, Gold, Copper, etc all increase in price because they are quoted in dollars.
There is really only 1 solution to this problem and that is to constrict the money supply.
I believe the reason is inflation. We keep borrowing money from the national bank that we have to pay interest on. The only way to get more money to pay back the current loans along with the interest is to borrow more. The more we borrow the more worthless our money is but with out borrowing we can't pay back debt so its kind of an endless circle.
I think it's the lack of oil production that hurts the dollar and the fact the we are dependent on foreign oil for our own energy needs. Canada's dollar is doing well- they are now producing LOTS of oil and that's done a lot for their economy. If our gross national product was AT least as high as our imports I'm sure we'd see a dramatic improvement.
Unfortunately here in the states there's only one sure fire thing that kicks our economy in gear and that's to put the war machine in overdrive.
Using force seems to make temporary changes, but lasting progess only occurs by making wise decisions that affect long-term. It is the American way to throw excess money to band-aid symptoms rather than cure the source that has caused this demise.
Therefore, President Bush's idiocracy is the reason for our recession.
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