Would this help gas prices?

Question

I am pretty much stating the obvious...but wouldnt this help gas prices.....???

If the econonmy started to rise and our dollar was worth more we would be able to afford more dollars per barrell? Back to where it was like when our dollar was worth 1.50 in canada rather than today when its even.

So...this matter should correct itself somewhat, right?

Granted the prices of barrells of oil have raised but if our currency was worth more like it was then our economy was booming ( i guess ) then that would have some of the problems. Right - Wrong??

Answer 1

That would help but not entirely fix the problem.

The Feds have slashed interest rates and printed more money to help OUR ailing economy, but since oil is traded in dollars, more speculators buy oil and raise prices. If the dollar was stronger, less speculators could afford it, so it would drop slightly. But supply and demand is still the controlling factor.

Answer 2

You win the prize of the day.. :)  

Since Oil and Gas prices are all globally traded in Dollars, an increase in the purchasing power of the USD would cause fuel prices to decline.

But good luck getting that done. We would need to reduct our trade deficit, budget deficit, map out a clear fiscal plan on what we plan to do about our Social Security/Medicare liabilities, and maybe for good measure, try and reduce the money supply. :)