LONDON (Reuters) – Oil surged to a new record high on Monday of nearly $140 a barrel, propelled by weakness in the U.S. dollar which offset the bearish impact of plans by Saudi Arabia to boost output.
Folks, how much longer can we ignore that our monetary losses and oil prices gains seem inexorably intertwined? And the drop in the dollar can be tied almost directly back to our out-of-control war spending, and so, yes, the war is not only hamstringing our credibility around the world…it’s almost seriously affecting our economy.
One other note…how high do you think oil is going to get this year? At this point, I wouldn’t rule out $160 in 2008. Because another round of war funding is coming due pretty soon, and I can’t help but think the world is going to look at that and start selling their dollars again.