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Accounting Solver

THE BUSH PUSH ON OIL PRICE INCREASES 2: The Weak Dollar

by ren on July 7th, 2008

Adam Kritzer at CurrencyTrading.net has written an article on “8 Ways the Bush Administration Has Caused the Oil Price Boom.”

Euro vs DollarAdam Kritzer notes that the Dollar has depreciated 37% against its chief rival, the Euro. Against the Canadian Dollar (Canada being the biggest source for the US of imported crude is at 1.8 million barrels per day (Energy Information Administration), there has been a 19% deterioration of the US Dollar. In March 2007, the exchange rate was US$ 0.8507 to one Canadian Dollar; in March 2008, it took US$ 1.0135 to purchase one Canadian Dollar. The US has had to spend more of its dollars to pay for its imported crude.

Is it coincidence or has the Bush administration really contributed to the oil price boom?

image from Microsoft Clipart reconstructed by Ren Garcia

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POSTED IN: Accounting Concepts, Accounting for NonAccountants, Personal / Household Finance, Small Business Finance

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