Weak Dollar and Traders Behind Gas Prices, Not Supply and Demand

This article refutes a lot of talk about OPEC and such causing high oil and gas prices. It also explains higher prices on consumer goods, not just driven by fuel prices alone. The dollar is becoming as valued as the paper its printed on, which this articles does not go into is because of national indebtedness for heavy war spending, as Ron Paul pointed out during his campaigning.

Traders and speculators in the investment community are increasingly buying oil futures for their portfolios and war fears (i.e. war on terrorism, middle east war-mongering) increase price on the trade floor, period.

Stop the interventionist, rogue war policy and oil and gas prices will fall, and the dollar will strengthen as money supply is reduced.

clipped from www.iht.com A peek behind the price at the U.S. gas pump From Capitol Hill to Wall Street to the campaign trail, the recent surge in oil prices is quickly threatening to supplant the mortgage crisis as the country's leading economic issue. Last week, prices for crude set another record, finishing at $125.96 a barrel on Friday, while gasoline prices closed in on $4 a gallon. While no one disputes that China and other emerging economies are craving more crude, the stunning rise of oil from $62 a year ago is hard to explain as only a matter of supply and demand. After all, analysts have noted adequate inventories. Over the same period, the dollar has declined nearly 15 percent against the euro, and the jump in oil prices "is very much driven by the dollar," buying oil has become a way for hedge funds, pension funds and other institutional investors to offset their exposure to dollar-based assets like United States stocks and bonds Graphic Weaker dollar, higher cost » View