N
Nick Z
Guest
The official interest rate for the US dollar in now below the inflation rate. Which means that you keep loosing some purchasing value of your money simply by keeping your money in a US dollar account.
And virtually all the OPEC countries have pegged their currencies to the US dollar. Which means that their money is now continuously loosing value due to the low US dollar interest rate.
And they in turn keep raising the price of their oil in order to compensate for the continuous loss of their purchasing power.
I'm sure the OPEC is deliberately raising the price of its oil. But aren't these countries simply defending themselves against the deliberate dollar devaluation by the US government?
And does this mean that the price of oil will keep rising for as long as the US dollar interest rate stays below the inflation rate?
And virtually all the OPEC countries have pegged their currencies to the US dollar. Which means that their money is now continuously loosing value due to the low US dollar interest rate.
And they in turn keep raising the price of their oil in order to compensate for the continuous loss of their purchasing power.
I'm sure the OPEC is deliberately raising the price of its oil. But aren't these countries simply defending themselves against the deliberate dollar devaluation by the US government?
And does this mean that the price of oil will keep rising for as long as the US dollar interest rate stays below the inflation rate?