The Real Reason for the High Price of Oil

The US dollar is now worth about 1/2 what it was 6 years ago when compared to the Euro. In 2002, it took about $0.85 to buy one Euro. Today it takes over $1.60 to buy one Euro. So what does this mean exactly. For one, it means crude oil (which is priced in dollars) is much more expensive. If we were to buy crude in Euros, the real price of crude would be about $65/bbl instead of $113.





Because of poor monetary policy and the growing money supply, Americans have become victims of economic inflation. The Government is not curbing inflation or the money supply right now so expect crude to rise even higher. The sad fact is the Europeans are seeing only a modest increase in their price for crude due to a strong currency.

Again, thank those in Washington for this problem. Too much deficit government spending and a growing money supply policy have now come home to roost.