As U.S. Dollar Crashes, U.S. Oil Prices Expected To Soar
A perfect storm of problems is rapidly building that will almost certainly create sharply higher gas and heating oil prices for American consumers. The value of the U.S. dollar is crashing on world markets as the huge Bush war spending balloons which could total $2.4 trillion dollars or $8,000 for every American within 10 years, is causing a huge federal budget deficit that continues to be funded by foreign bonds held by nations such as China, Japan, South Korea and Britain. This huge war deficit spending is causing a rapid world free-fall of the value of the U.S. dollar. During the Clinton Administration years the Euro was worth around 80cents compared to the dollar. Today the Euro is worth around $1.43 compared to the dollar.
Another further complication is recent dramatic rise of the value if a barrel of oil to around $92 a barrel, but certainly headed towards $100 a barrel. In 1973, a barrel of oil was valued at just $2. Certainly conditions are building for terrible U.S. motorist sticker shock and terrible increases of the price of heating oil furnace homes.
Turkey continues to mass around 60,000 troops at the Northern border of Iraq, and could soon launch a full-scale invasion of the normally more peaceful Kurdish area of Iraq and will harm U.S. and foreign investment in the area. Hunt Oil of Texas recently signed a billion dollar deal to explore for oil in the Northern Kurdish region of Iraq, and this part of Iraq often referred to as "Kurdistan" advertises on business related cable TV channels for U.S. business investment.
The U.S. war for oil in Iraq has terribly failed and instead has only helped to tighten world oil supplies and raise prices. Iraq was thought to have the largest reserves of undiscoved oil in the world, estimated at 220 billion barrels, or a 98 year supply for the U.S. However the continued violence in Iraq has made any new exploration for such oil assets difficult. And the continued cost of the war to the U.S. consumer only helps to drive up world oil prices as the value of the dollar falls.
Mr. Bush is the first business degree MBA to become president. However if any CEO of a corporation would so badly manage affairs as Bush has, then certainly the stockholders would fire that CEO.