James Lewis

Path Dependency in the EU and U.S. Economies

Oil can not be priced in Euros because the European Bond Market is too small to cater for the volumes. It is also does not make sense for the Arab oil producing nations to unpeg the dollar because there economies are based primarily on selling oil (which is priced in USD). They can and are making adjustments for the USD debasement by pushing up the price of oil.

There are s few factors behind the surging oil price (apart from s+d):

China is trying to buy as much oil as possible as a means of flight to quality out of the USD. China is not stupid, they can see that the US is effectively devaluing their dollar and pumping up inflation to export their monetary problems. China is also aware that a contingency for a dollar crash is already in place which involves the a financial Treaty between Mexico/Canada/USA and involved the creation of a new currency to replace USD - the Amero. All debt owed to China will be devalued and priced in Ameros at whatever price Canada/Mexico/USA decide. If the Amero is put into circulation.
This incidently is how USA is going to write off it debt if the worse comes to the worse.

The speculators everyone is blaming for pushing up the price is actually an agency arm of the Chinese government. They are buying paper oil with their useless USD. The other speculators are the oil producing nations buying paper oil, restricting supply to drive the price ever higher. It could be argued that the Oil producing nations have waged an economic war with the USA covertly. Or it could be argued that they dont want to be holding devalued USD monopoly money and so are manipulating the price of oil to reflect loss of USD purchasing power. **REAL INFLATION**

For those who want to look at the real numbers go to:
shadowstats.com