"Colin W Kingsbury" wrote in message
ink.net...

"Doug Carter" wrote in message
. ..
paul kgyy wrote:
International oil is priced in dollars, so the crash in dollar values
(caused by US budget deficits)has reduced (or at least kept level with
recent crude price hikes) the cost of fuel for people who can pay with
Euros, Pounds, Yen, you name it.

That is really silly. I don't even think Paul Krugman could rationalize
that.

Any company that is involved in international financial flows of any
volume
(i.e. 10s of millions plus) is going to be doing some pretty serious
hedging
anyway. Basically, you want to completely wipe out currency fluctuations
since over time they are just as likely to hurt as to help (see the overly
strong US Dollar of the late 90s for example).

I used to work for a division of the German company Bertelsmann here in
the
US and whenever money was moved across the ocean, it was done at an
"internal exchange rate" that was always way behind the rates you'd see on
CNBC.

We could also have a good argument over chicken and egg here. If the value
of the dollar goes down, and oil is priced in dollars, then it is
mathematically predictable that the price of oil will rise accordingly.
That's how commodities work.

Yes, but fuel prices are still WAY different.

The appropriate analogy to the foreign airlines is NOT theUS airlines, but
AMTRAK.


--
Matt
---------------------
Matthew W. Barrow
Site-Fill Homes, LLC.
Montrose, CO