Posts: 573 Joined: 02 Sep 2004 Location: New Albany, Indiana USA
Posted: Tue Aug 29, 2006 1:33 am
Are the Summer doldrums always this bad? ...or is the price of gas so high that even millionares have trouble affording both coins and gas???
I got a question: Over-seas, our Dollar is worth about half what it was worth before Bush took over. I think it's because our national debt has grown so huge. Assuming we pay Saudi Arabia and other foreign countries for our oil in Dollars or some exchange rate equal to what a Dollar is worth over-seas, don't we have to pay twice as much as we did before? Isn't that one big reason for gas being so high? _________________ ~ Murph ~
I think because we Americans with our gas guzzling cars buy the most oil of any country the price of oil is always stated in dollars. While our cost per barrel in dollars has gone up the cost to others has not gone up as bad in their currency.
For example, in 2002 a barrel may have cost $40US and you could buy $40US with 27 British Pounds. Today it may cost $60US per barrel (50% increase) but you can buy $60US for only 32 British Pounds so the cost in pounds for a barrel of oil should have only gone up 19%. Fortunately we have some of the biggest oil companies like Exxon, whose management increased the price on the Brits more than 19% so they can increase their salaries by 200%.
