Quote:
Originally Posted by Joecooool
Oil is sold on the world markets. There is no guarantee that oil pulled from Canada or even here is going to stay here. Why do you think they want that pipeline going to the gulf instead of the refineries in Oklahoma or central Texas? So it can be sold on the world markets. They want an easy way to move their product to where they will get the highest prices. Those commercials you see on Fox News talking about increasing production here wouldn't do jack shit for prices. Notice how they never talk about that?
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That is all true. However, it is traded in dollars and since QE1 and QE2 have substantially increased the supply of dollars in the world, it takes more dollars to buy the same amount of oil. That horse is already out of the barn, but we do not have to continue to make these same mistakes and make our currency less valuable vs real-world objects.