Monday, December 17, 2012

Oil and Dollars

"While it should be said that subsidization of any business activity should be offensive to any true capitalist, Obama's hostility to drilling (though offensive) is the norm inside the Democratic party; his views arguably moderate considering the visceral dislike of fossil fuels among so many Democrats. After that, we only care about greater access to U.S.-based oil thanks to President Bush's wrongheaded decision (ultimately mimicked by President Obama) to pursue a weak dollar right from the beginning of his presidency. Simply put, oil isn't expensive at the moment, rather the dollar in which oil is priced is cheap. If the dollar were still trading where it was when Bush took office in 2001, oil would be very cheap such that most of this drilling that we presently salivate over would be non-economic."


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