Dear friends,

 

I'm no economist, and I don't pretend to be one.   However, with many years on these boards, and especially with Hayekian's help, I've learned a little bit about the way the Federal Reserve operates.

 

The Federal Reserve Bank has been printing more and more U.S. Dollars....almost as though they have a huge supply of excess paper clogging their warehouses.  hehehe.  Since 2000, the number of U.S. Dollars in circulation has increased tremendously.

 

Maybe somebody (Hayekian?) could step in here to tell us a little bit about the overall affect this additional money has had on the U.S. economy.

 

As I see things, this huge increase in additional money has had a direct role in the price of oil on the world market.   The value of the U.S. Dollar has been in a steady rate of decline, since President Bush took office (Democrats, and their damned spending habits!  Bush is the best Democrat we've ever had as President)   With the decreased purchase power of the Dollar, everything naturally costs more than it did when money was harder to get our hands on.   The increase in available money makes the Dollar nearly worthless........and this, in no small way, plays a role in the price of imported oil.

 

When the Dollar goes down in value, everything we buy costs more.  Foreign nations, who sell oil to the U.S., now must ask for more U.S. Dollars in order to make up for the lost revenue. 

 

Am I Correct, or am I Wrong?   Aren't oil prices inversely proportional to the value of the U.S. Dollar?   Maybe not exactly....due to supply and demand factors......but it seems to me that the falling value of the U.S. Dollar and the increased price of crude oil are very closely related.

 

OK.......let me have it with both barrels.  I can take the criticism.

 

Joel