It looks like the dollar is beginning to stiffen some. But there is also a concern about overseas supplies, particularly from Nigeria which is one of our key suppliers.
Yea you are right, it is rebounding some, which is good news. But we need more contigency plans, because those rebels in Nigeria, wont be going away anytime soon. To be counting on that just doesnt seem reasonable to me.
But the Gulf Coast is fine to polute... The hypocrisy of the Left Coasters and the Yankee Carpetbaggers in Florida knows no bounds...
Here's a thought. DRILL AND REFINE OUR OWN FRIGGIN' OIL! Now, you all who are suggesting that Florida doesn't allow drilling off their coast, that isn't entirely true. China and Cuba drill off the Florida coast.:rolleye33:
Much of the runup in oil prices is because of the collapse of the dollar, which has many causes, but is primarily due to the govt. failure to manage the budget deficit and current account deficit. The dollar was based on the gold standard until 1972, when we withdrew from the standard. At that time the value of the dollar was based on the overall strength of our economic system. The economic system is composed of govt. activity, private activity, and our treasury and central bank (the Federal Reserve) which is charged with management of our currency. The govt. has failed miserably to control its deficits, under the republicans the last 7 years. The current account deficit has grown for 6 of those 7 years, even though the dollar was falling and "would make our products more competitive overseas". It kicked in after 6 years. The govt. is so embarrassed by its deficit and the growth of the money supply that it quit reporting M3 (the broadest measure of money supply) two years ago. Simply pathetic. The smart boys calculate it from the other numbers released, and peg it at about 10-15% annually over the last 4 years, way too high considering the economy was growing at 4%. Then when the economy started getting sick late in 2006 and the Fed started dropping rates in 07, the dollar fell further as there was less international demand for our lower yielding bonds. We all know inflation is running well ahead of the govt. figure of 3% the last few years. The Fed is getting worried about inflation and stated it would fight inflation and stop cutting rates. That caused the dollar to rise a bit the last few weeks. But if the economy continues to deteriorate, the Fed will drop fed funds rate to 1% just like it did in 2003-2004 to try and get the economy moving. If that happens, the dollar strength could prove only a temporary respite. It could be the oil speculators are not speculating on oil supply alone, but including a bet on the direction of the dollar. It is astounding to me that with major crisis in the mortgage markets, housing market, financial market credit crisis and energy market crisis, we hear nothing from our president. We got a stimulus package with dubious effect, and that's pretty much it. The crisis continues to boil, and nothing from the president. This guy is much worse than Carter. I got regular gas on my recent trip to San Jose, $4.25 a gallon. Unemployment jumped up today to 5.5%, and the stock market cracked this week. Big question is whether we fall below the March low on the DJIA. Looks like we are testing the old low. The next couple of weeks will be interesting, to see if the downdraft is arrested, or if we fall through indicating more rough sailing ahead. This bear market started in Oct. at the old high, and on average they last 9 months. The fed dropped rates real fast, and each drop takes six months to be felt in the economy. I've been buying in lately, sitting on some losses now. This may not be an average bear market, given how out of whack home prices were in some areas. Foreclosures are continuing to rise, which can't be good. Oil and gasoline continue to rise, that can't be good.
At this point, I'd just as soon this president do nothing for the duration. Everything he touches turns to chit. he clearly understands very little about economics, he has surroiunded himself with loyal sycophants who can't get the job done, and he just ain't that bright. All I want him to do is not mess things up any worse.
I agree with houtiger that a good man would stand up at this time, but I'm not surprised that Bush isn't doing that.
I'm pretty sure he's as ready to leave office as the majority of the elctorate is to see him go. I don't think he, or any of his advisors have a clue what to do. After all, if the answer ain't cutting taxes and arrogantly deriding his critics, he's lost.
