Higher Oil and lower dollar feeding each other in a frenzy – widening trade gap shows the real problem
Peter Oberois
Jun. 10, 2008

The lower US Dollar and higher oil price has become a recursive function of each other. That means there is no bottom in dollar and there is no ceiling oil price.

The U.S. trade deficit swelled more than expected during April, pushed wider by record oil prices and an increased consumption for imported crude that offset a solid climb in exports. The U.S. deficit in international trade of goods and services increased by 7.8% to $60.90 billion from March's revised $56.49 billion, the Commerce Department said Tuesday. The March trade gap was originally reported as $58.21 billion.

As US Dollar goes down, oil price moves up. As oil price moves up, the US trade deficit goes up causing a lower dollar. The phenomenon is feeding on itself.

Higher Oil and lower dollar feeding each other in a frenzy – widening trade gap shows the real problem
Peter Oberois
As US Dollar goes down, oil price moves up. As oil price moves up, the US trade deficit goes up causing a lower dollar. The phenomenon is feeding on itself.
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Chinese stock market collapses as Chinese Central Bank focuses on credit tightening measures – what the effect on Dow?
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A moderation in Chinese economy spells a slowdown in global commodity inflation. That in turn is very bullish for US stock market.
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That means rates will rise both in US and Europe. It seems Eurpeans are more concerned about inflation than the slowdown in the economy due to higher dollar.
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Oil will not retreat till dollar stops collapsing – who is controlling crude prices?
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As US economy goes down, so does US Dollar and that is creating upward pressure on the oil price as oil merchants demand more per barrel of their oil.
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Asian stocks start the day falling sharply – can Dow Jones Industrial Average crash?
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The higher oil price will trigger more foreclosures and credit card defaults accelerating run on the banks. The financial institutions are headed into a massive collapse typical after a 100 year banking cycle.
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Before trying to missile Russia, Bush and McCain should shield American economy from financial crisis: Russian President Medvedev
Tarun Sikhdar
Russian President Madvadev is pretty mad on Bush and McCain and their war mongering policies as America tries to subordinate countries that oppose America in any way.
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The G8 calls for global action on oil but real culprits – India, China, and OPEC stay untouched
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Stop China and India from enjoying outsourcing money and direct foreign investments. That will force them to stop oil subsidy. Free market price will automatically curb the oil demand...
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