Philip Davis

Options Trader: Thursday Outlook

Thanks fat - Hope you took the money and ran!

Bbody - The dollar was 40% stronger when oil was 70% cheaper. It's the disposal of $12Bn a day used on a commodity that is burned the same day (effectively burning the dollars) that is destroying our currency. Dollars flood the market as they are exchanged for what becomes nothing as soon as it's used and end up in the hands of OPEC, who don't need them all, allowing them to spend up for things they want creating more global inflation.

If I paid you $2 a gallon for your tap water and you collected $1M a day at a huge profit, then you would end up inflating your local economy spending that money. If I paid you only in Lira and you tried spreading that around, you would find it was harder and harder to pass off as you push more of it on your local vendors and the local banks were swimming in it. Multiply that $1M a day by 12,000 and that is what is happening to the dollar - globally 4 Trillion of them are being used to buy oil per year and the consumers end up with nothing of lasting value for their dollars while the producers get more and more dollars every day and they do last, they pile up and up and up until they become worth what they look like - trash. Your currency cannot have value if you flood the world with it....