http://www.dailyreckoning.com.au/fed-rate-cut-oil/2008/03/11/ An independent perspective on the Australian and global investment markets Sat, 20 Mar 2010 21:24:16 +0000 http://wordpress.org/?v=2.8 hourly 1 http://www.dailyreckoning.com.au/fed-rate-cut-oil/2008/03/11/comment-page-1/#comment-11714 Anonymous Guy Wed, 12 Mar 2008 13:55:16 +0000 http://www.dailyreckoning.com.au/fed-rate-cut-oil/2008/03/11/#comment-11714 The fact that a falling US dollar means the US will be constantly outbid by the EU and other nations in the oil market doesn't seem to have sunk in to the US public in general. The fact is that the further the US dollar falls, oil becomes relatively more affordable for countries whose currencies are strengthening against the dollar and more expensive for the US and countries whose currencies are tied to the dollar (e.g. China). The consequences will be very interesting to watch. The fact that a falling US dollar means the US will be constantly outbid by the EU and other nations in the oil market doesn't seem to have sunk in to the US public in general. The fact is that the further the US dollar falls, oil becomes relatively more affordable for countries whose currencies are strengthening against the dollar and more expensive for the US and countries whose currencies are tied to the dollar (e.g. China). The consequences will be very interesting to watch.

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