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| Syria-Lebanon-Iran |
| Weak dollar caused 30 percent of oil price rise: Iran |
| 2008-08-03 |
| (Reuters) - The falling value of the dollar is to blame for around a third of the rise in the price of oil, Iran's Foreign Minister Manouchehr Mottaki said on Saturday. "Thirty percent of the increase (in the price) of oil is because of the decrease in the value of the dollar," he said on the sidelines of the South Asia Association for Regional Cooperation (SAARC) summit in the Sri Lankan capital Colombo. He did not say what time period he was referring to. The dollar has dropped 33.8 percent against a basket of six currencies since U.S. President George W. Bush took office on January 20, 2001, according to the New York Board of Trade's dollar index .DXY. |
| Posted by:Fred |
| #5 Nope, House prices wasn't included on the way up, so there not effecting stuff on the way down. There's certainly inflation and deflation in the economy simulatneously. this is due to the delveraging effect. i.e. deflation in things nornally bought on credit, inflation on everything else. |
| Posted by: Bright Pebbles 2008-08-03 17:51 |
| #4 Given the massive deflation in all things housing related, a overall 1.1% inflation may actually be overstating things, even with oil spiking. |
| Posted by: Bin thinking again 2008-08-03 16:27 |
| #3 If/when the $10+ trillion in credit default swaps issued by the world's financial institutions are themselves defaulted on, we will forget all about expensive oil. |
| Posted by: Anguper Hupomosing9418 2008-08-03 14:01 |
| #2 Jack, Only if you use a GDP deflator of 1.1% to "take account" of inflation. |
| Posted by: Bright Pebbles 2008-08-03 12:30 |
| #1 What is more amazing is that with record oil prices, sphincter-tight credit, rising food prices, record foreclosures and bankruptcy, a negative housing market and GM losing $15 billion, et.al., the US economy is still GROWING not SHRINKING. Whereas both the UK and Eurozone with their very strong currency's are going down, down, down. American exports are leading the way and in some cases we are seeing reverse out-sourcing and industrial immigration - autos, steel, fabrication and manufacturing from Europe, India and Japan. Sure, just like now when I am in Belgium for a few weeks, the weak dollar sucks. But when I get back I won't be worried about a soup line. |
| Posted by: Jack is Back! 2008-08-03 07:42 |