"The price of oil touched almost $120 a barrel. This caused anxiety in the United States, where the presidential candidates are debating the merits of suspending the federal tax on petrol over the summer. Meanwhile, OPEC's president forecast that oil prices would reach $200 a barrel if the dollar continued to slide. Chakib Khelil said that “each time the dollar falls 1%, the price of the barrel rises by $4, and of course vice versa”.(Source)
That means, if nothing but the dollar's falling value influences the price of oil, then according to our circular-logic-friend, Chakib Khelil, the dollar will see another 20% decline if there's a 20% decline in the dollar ($200-$120 = $80 and $80/$4 = 20). Obviously though, no one is making a claim as to how much further the dollar will slide, right? Well, here's a hint. The official "strong dollar policy" of the US Treasury Department is a load of hogwash. Look, if I borrowed as much as the US Gov't has from all the other nations and it started to get difficult to just borrow indefinitely, I'd surely devalue the hell out of my currency before I paid them all back and send a thank you note saying...
"Thanks for the free wars and 25 extra years of superpowerdom, Suckers!"
P.S. - Especially YOU, Cheena!
P.P.S. - Hey European buddies, the Great American Tag Sale has begun! Step right up and buy America on the cheap! Buy our assets, before the Cheenese do!
BTW, I would never send such an obnoxious letter. But America might.
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