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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (60999)	2/27/2000 7:38:00 PM
From: D. L. Renaud	Respond to of 95453

Hi Bigbull - I would like to start a discussion regarding the dollar and how it could cause oil prices to go much higher. Oil is prices in dollars, and if the US dollar starts to decline then OPEC would need a higher price to maintain parity. If you go back to the 1970's the first result of excess money creation was a rapid acceleration in demand in the US economy. The second result, following behind by several months, was a significant increase in the general price level, which caught many "experts" by surprise. The third result was a decline in the dollar. If you look at adjusted reserves in the US over the last two months, it's a straight line up. Over the last three years, if you look at the chart, the trade-weighted exchange index has a clearly defined downtrend. If the dollar goes down by 10% then won't OPEC require higher oil prices. Maybe the futures people know this and why oil prices continue to go up. Your thoughts are appreciated