Today we are continuing our series on the rise in gas prices. Another major factor is the declining value of the dollar:
http://www.google.com/hostednews/ap/article/ALeqM5i4_q7DtiEHvUTVNlJoaJ9ufkd1kgD9BJMHB80
As the article notes:
“…prices are on the rise and it is the crumbling U.S. dollar that is sending them there. The dollar has lost more than 15 percent of its value since March. Because crude is bought and sold with dollars, investors who hold euros or other currencies that have strengthened against the dollar can essentially buy more crude with less.”
So to fight high gas prices, Washington needs to strengthen the dollar. And that means lowering taxes, lowering spending and getting the economy moving again.
But since Washington isn’t doing much of that, the dollar is likely to continue to be weak…and gas prices will continue to be high.
