David Kretzmann_

Oil Replaces Gold as the New Inflation Hedge

Your assessment doesn't make much sense to me. The only way the dollar will increase and stay higher for a relatively long amount of time is if the Fed stops printing money at will and comes to a reasonable monetary policy. Unfortunately, this likely will not happen as the U.S. can't keep up with its spending without further printing of the money which is what causes inflation. Oil is not and will not be an inflation hedge, but it will be impacted by the further weakening of the dollar to come over the long run.

You talk about supply and demand, yet you do not take this into account when talking about the dollar. The dollar is not backed by anything except the government's credibility (which is always a risky thing to rely on in and of itself), and the Fed is printing insane amounts of money, increasing the money supply, thereby decreasing the purchasing power of the dollar and creating the inflation that we see today. It's silly to think that the dollar can increase over the long run as long as the money supply is increasing.