Almost spot on, pacplyer . . . . With the loss of the gold standard, the Kissinger agreement of 1974 dictated that the USA would excusivly purchase their oil from OPEC, in exchange that all OPEC oil sold to the World would be exclusively traded in US dollars. Arabs in return would be allowed to become rich, but the World would be forced to stockpile / support US dollars (thereby feeding congress's insatiable deficit spending appetite). Only Iraq and Iran were not signatories to this agreement (and we now know what became of Iraq).
The American /Iraq war of support (and other American deficit spending) has cost billions $$ in future American money spent. The European Union on the other hand has a much tighter leash on it's membership's fiscal policies. . .therefore a weak Dollar vs. Euro. There is no free lunch. . . The Euro / Dollar imbalance is now translating into a very noticeable reduction of the American quality of life.
For America - repair the weak dollar and you will help restore normal priced oil in America.
Last edited by L-38; 27th Jun 2008 at 02:16.