The price of gas

On 22-May-2004, Cub Driver wrote:

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On Fri, 21 May 2004 13:41:41 GMT, "Jay Honeck"
wrote:

Our American dollar buys a lot less than it did just a few years ago.
Factor *that* in, and gas may be cheaper than it's ever been.

Oil is priced in dollars, so in theory that shouldn't affect us at
all.

Of course, the Saudis sell for dollars and buy stuff in euros, and
they're not stupid. One reason oil is bumping around $40/barrel is
that the oil producers countries want to reclaim their buying power.

Another reason--and probably a much larger one--is the huge growth in
manufacturing (and attendant prosperity) in China and to a lesser
extent India. We can look forward to an era in which the things China
produces (sneakers, radios) will get cheaper and cheaper, while the
things China consumes (oil) will get more expensive.


I dissagree, I think the US standard of living will fall some and Chinas
will rise (as you said).
But there cost will rise, not fall.
My hope is that this will allow the US to start making radios and shoes
again.
They will cost us more, hence the lowewr standard of living, but I can deal
with that.
Everyone cannot be in services, and sustain an economy.

Les





And it is easy to exaggerate the weakness in the dollar. Not too many
years ago the euro was launched at $1.18. Now it is $1.20. Big deal.

all the best -- Dan Ford
email: (put Cubdriver in subject line)

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