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Strategies & Market Trends : The coming US dollar crisis

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To: Real Man who wrote (5312)3/21/2008 5:44:08 AM
From: dybdahl  Read Replies (3) of 71475
 
Why should oil drop to be of benefit to USA? If American consumers use less oil, it will benefit American economy, of course, if you don't regard any other parameters. However, if USA starts to use more oil for producing export products, it will benefit American economy.

I see two mechanisms that will push energy intensive production into USA:

1) Global warming efforts in many countries are pushing energy intensive production out of these countries. USA is one place that doesn't put so many restrictions on energy in production.

2) USA has higher efficiencies in Energy usage in production than low-wage countries like China. If oil price was the only cost of a production, all production would be in high efficiency countries, and not in China.
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