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The Correlation Between Crude Oil and the U.S. Dollar

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Buying USO Is a No-Brainer

Bush cannot be blamed for a world commodity quadrupling on his watch. The world was different, and now its back to normal. . . if the price was $26 in 2000, and $150, and oil, after food, is the ultimate world commodity, what made the world different that world prices ran up so far in eight years? simply, China's massive national rebuilding for the Olympics and manufacturing modernization, that is the only "unique" event that has happened in the last eight years, which makes the 2000 decade different this time. But not just the for the olympics, buidling a modern, world dominating capitalistic manufacturing base takes alot of energy and commodities, and finished goods processing, and eight years or so is a very accelerated pace of world class implementation. But the downside is that the beneficiaries of increased demand for energy was OPEC, which sucked ALL the excess capital out of the world in the last two years, and it continued sucking operating capital out as well. OPEC's customers have no money left to buy oil, china has very little required building to build, and then the world returns to "its the same " commodity bust and capital destruction cycle which is endemic to leveraged and credit based, human emotions' based, economic systems. Given that analysis, USO is a bit premature, while the capitalistic system has to be reliquified through deleveraging while maintaining maximum daily operations to rebuild the capital base through hard work at lower wages and less work at current wages.

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