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

CLH is most probably correct. And De Graff is also correct the fundamentals of the dollar are changed. ( However,I would not say forever).
What happens to the dollar long term depends on our response to this crisis. If while they have the financial institutions jacked up with short term liquidity they put a firm foundation under it by creating a system that encourages saving and investment instead of gross consumption for it's own sake thing could return to normalcy. This also depends on us as a country creating a energyl supply that is both abundant and affordable. Without affordable you can not grow any country's economy
long term. This means that we probably need many forms of energy for our supply not any one particular alternative fuel. This is especially true in the short term.

Preparing for the Fall

This is a great article it give all young and old , experienced trader and novice a look at the historical perspective.

The fact that a Obama win in November will probably result in a 30% cumulative tax increase within 18 months, plus a wind fall profits tax on our oil companies along with a cap,tax and trade deal relating to carbon dioxide emmissions will only further sink the American cousumer and taxpayer. The result will be more increases in costs of all energy, more increases in food costs and more inflation all around followed with more government regulation and of course the extra taxes.

What will not occur is any market solution to one damn problem facing us. This is especially true of oil and energy because the Democrats and their radical environmental friends will continue to block efforts to drill for oil domesticly and off-shore. And block the building of new safe nuclear plants. plus block building more oil refineries, and coal to liquids plants. Note: Teddy Kennedy did not even want a wind farm in his back yard. So much for Democrat solutions

Heck most people are unaware that in additiion to having to import about 65% of our oil supply yearly we also have to import about
18% of our refined oil products thanks to Democrats and their radical environmentalist friends.

When the market wakes up to this reality it will most certainly head lower because withot adequate and affordable energy all else stops.

Fed Rate Cut: What Happens When We Get to Zero?

Congress needs to act to provide a real not fiction stimulus:

The problem with the proposed stimulus is that government has no money unless they first take it from us by higher taxes.

What we need is a policy that benefits the public month after month without raising taxes.
A) Cap interest rates on credit cards @ something like 14% versus the excessive usuary rates banks and credit cards charge of 25 to 32%.

B) Limit the spread between the FED rates and mortgage rates banks can charge so that the discount is passed on to prospective homebuyers by the bank.

C) Allow large corporations to write off large business investments in a two year period.

Congress also needs to immediately enact a National Comprehensive Energy Plan.

This plan needs to admit that the countries of the world are in a race to ensure they have an adequate energy supply into the future until they have a workable hydrogen solution. This is a race that if we lose we become a fourth world country over night along with a 10% or higher unemployment rate.

This means we should utilize all available sources of energy that science not politics proves is viable. Such as building more nuclear plants, build at least four more oil refineries located inland where they are not affected by hurricanes,
Use liguid natural gas to power large trucks ( approx 5 % are already powerd by this source), build clean coal technology CTL
(Coal to liquids) plants, develop geothermal energy where feasible,
Allow our oil companies to drill off our coasts and under the rockies,
Require new construction to be powered by solar for 30% of their power usage. Develop more wind farms and more hydroelectric power. Stop the ethanol farce and develop bio-diesel from trash.

Link the development an implimentation of our energy plan to a cut
in our purchase of Arab oil by approximately 3% yearly until we cut our dependence on foreign oil by 50%.

If we fail to act to get energy right all of the other things will be moot.