Why this domino effect in the USA economy?
I could not disagree with Infernal Disaster more. One of the main factors for $200/barrel oil is speculation that the dollar will continue to drop in value. Let’s remember, oil is sold on a global scale in US currency only. Europe bids 64 cents to our dollar on oil. $200 a barrel here is about $128 a barrel for them. While on the topic of Europe, it is a fact that they pay a significant amount more per gallon at the pump because it’s used to fund national healthcare, government paid higher education, etc. But we must not forget that Europe also has a more sophisticated system of mass transit than the US does and it’s quite popular. Economically, there’s more to the domino effect than just gas prices. Everything you stated is correct but when you pile the ethanol mess on top of it (food for fuel), suddenly it trickles down into more expensive feed for livestock which means beef and chicken cost more. Eggs are more. Dairy products are more. Rice and wheat prices raise to match and then y
