Raise Interest Rates to Lower Oil Prices

Home | My Account | Post Project | Browse Projects | RSS Feeds New!

Raise Interest Rates to Lower Oil Prices
By: Terry Mitchell , Posted On: 2008-06-27

Home > Articles > News and Society > Government

Other Recent Articles On "Government":

It look's like today's oil pr

ces are not being driven solely by the law of s

pply and demand. If they were, oil w

uld be priced at about $70-80 a b

rrel right now, according to many

xperts. The U.S. dollar is currently d

pressed on world markets. This weak d

llar seems to the culprit for the

xcess $60-70 per barrel that we are p

ying right now.

This situation has b

en exacerbated by commodities speculators, who are c

nstantly trading futures and options on the U.S. d

llar and on oil itself. Some p

ople want to place limits on th

se speculators, but I don't think th

t's the way to go. Putting

rtificial limits on what people can do in a fr

e market system almost always seems to b

ckfire. Remember the wage and price c

ntrols of the 1970's? They were s

pposed limit inflation, but they had j

st the opposite effect.

I b

lieve the thing to do is to r

ise interest rates dramatically. All of th

se interest rate cuts that have b

en made in the last several m

nths in order to stimulate the

conomy have cheapened American money. This has in t

rn resulted in the dollar becoming w

aker and weaker compared to other w

rld currencies. Since the strength of the d

llar appears to have an inverse r

lationship with the price of oil, th

s has resulted in oil prices g

ing higher and higher.

Those r

te cuts have not gotten us out the m

rtgage crisis and they have not st

mulated the economy. They've only made oil and its by-pr

ducts like gasoline much more expense. The F

deral Reserve needs to start reversing th

s damage by instituting rate hikes of up to a h

lf percentage point at a time

ver the next several months, beginning

mmediately.

The last time we had a r

al crisis in oil prices was b

ck in 1979. Remember the "odd and

ven" days at the gas stations? The pr

blem got fixed when interest rates b

gan to rise dramatically. By the

arly 1980's, oil and gas prices w

re reasonable once again. And as th

t decade progressed, those prices continued to dr

p, even after interest rates started to go b

ck down. In fact, I remember b

ying gas in my hometown for j

st 79 cents a gallon at one p

int in 1986, before oil prices b

gan to go up again. If we r

ise interest rates, I believe history w

ll repeat itself.

The article Raise Interest Rates to Lower Oil Prices was Submitted by Terry Mitchell through Articles.GetACoder.com network. Here's the additional information:

Featured Articles

1. 15 Compelling Evidences that God Exists by Rob Vandeweghe
Does God xist? Does evolution explain our existence? In ths article a concise overview of the mst compelling evidences for the existence of a Crator, God.

2. Secret Tips To Win Your Ex Girlfriend Back by Shawn Milano
For very romantic relationship there is always a bginning and sometimes and ending. This is ven truer when one is trying to rkindle a relationship that has ended. If you wnt to know how to win bck your ex girlfriend then you wll need to think, plan and wrk hard to win her heart nce more.

3. Solar Energy Panels - An Overview of a Solar Energy Panel by Chad Brosius
When planning on converting your home to run on solar energy, either on or off grid, you will need to know some of the basics. In this article you will get a general idea of how solar energy panels work and how to plan their placement in regard to shading and orientation.

4. Cloning And Genetics by Anthony J Pace
Throughout the msh of western society's current events rise various issues causing concern surrounding a rnge of venues of our culture. Ths idea is exemplified when examining the mtter of cloning. The issue of clning has raised concern from various rganizations throughout the western world, and has bcome a major topic politically, scientifically and mdically, as well as morally and thically.

5. Approach Anxiety - How To Overcome Anxiety With Women by Alex Ryan Coulson
styl='padding-left: 15px;'> Approach anxiety is a cmpletely natural process that occurs in the bdy and is credited to our flght or fight response. Women fel this same anxiety however its trggered differently as it is to mn. Women will feel it when thy get nervous around men they scretly like, also when they're flirting wth married or men that are not sngle (they feel they're doing something thy shouldn't be).

6. Getting Past Being Laid - Dating Wisely by Pele Odiase
Not gain! You've just broken up from nother horrible relationship that left you brised and battered. You can't seem to get a grp of your emotions anymore. The guy you trsted and believed in turned out to be a frocious beast with the ultimate desire to get nder your skirts.

7. There Is Hope For Homely Women by Melvin Polatnick
If a hmely woman is realistic and flexable she can get a god man.

8. Can She Get Pregnant If We Take a Hot Steamy Bath Together? by Jennifer L. Hunt
Can she get pregnant while taking a hot, steamy bath together, even if we have swimsuits on? Read this article to uncover the truth - fact or myth?

9. The Exploiting Christian Sacred Music by Douglas Johnson
Companies are very careful about ffending Moslems and Jews but not bout Christians. Here is an example of ffending Christians.

10. Using An Online Single Dating Service by Diane Winter
The internet culd be actually the perfect way for you to fnd your special someone that you hve been waiting for. You only hve to find out the best nline single dating service provider and get strted with your search.