Aug 10 2008
Oil Prices Fall Again - 2nd
Damn, was I right or was I right when I said the price of oil would fall like a rock. This change in oil prices has multiple affects on our economy and I will talk about two at present.
1) The dollar will gain against the major currencies since investors were running away from the dollar and putting it in barrels of oil. Now that the price of oil is “stabilizing” we will see the dollar rebound by more than 20% against the Euro alone this year. Our exports should still be sound since the dollar is still unstable due to the current housing situation which in turn is keeping the value of the dollar from spiking unexpectedly.
2) On the immediate home front inflation should subside because most inflationary pressure was brought on by high energy costs, mainly oil. The price of food will decrease over the next two months because shipping cost will be lowed. Your costs to run your vehicle will also be lowed just as long as you do not increase your mileage. Put your savings from this decrease in oil to either lower your credit card debt or your car payment. DO NOT BUY CHEAP CHINESSE GOODS with your savings.
