Oil Conundrum Explained
"Each and every American, and especially those involved in tracking the economy, will have to remind themselves and the public that at bottom, it was the Federal Reserve that created the conditions by which we suffer, including currency devaluation and high oil prices, NOT some foreign enemy."
http://www.zerohedge.com/news/oil-conundrum-explainedThis article rings true to me. I still argue we would be better off exploiting our own domestic resources and improving refinery capacity and modernization and improving/modernizing distribution to decouple for crazy foreign suppliers, and we can definitely do without high taxation and subsidies in the entire energy sector as well. But this article makes sense that other devaluing fiat currencies are masking the Forex market impact of Fed policy, and like a balloon getting pumped full of air, if squeezed it will follow the path of least resistance, so the air winds up in oil. If the dollar loses reserve status the air being let out will shoot that balloon across the sky. If fundamental changes in Fed policy occur a managed realease of this hot air might be possible.
But, the Neo-Keynesian's are in charge, so, until they can be cleaned out it will be business as usual...
Thus, back to expoiting domestic capacity.