Is Obama right? He says a stronger dollar reduces oil prices. Is he right?

The famous-for-being-conservative Wall Street Journal reports:





The underreported economic news of the week is that Barack Obama favors a stronger dollar. Even better, he thinks a stronger greenback would help to reduce oil prices.





That at least is what the Democratic Presidential candidate told a town hall forum in Parma, Ohio, on Tuesday. ';If we had a strengthening of the dollar, that would help'; reduce fuel costs, he said, according to a Reuters dispatch ignored by most of the media.





This ought to be a bigger story. In linking the dollar to oil prices, Mr. Obama is pointedly at odds with the Bush Administration and Federal Reserve, both of which blame high commodity prices on supply and demand, despite falling demand due to slower global growth. Fed officials -- in particular, Vice Chairman Donald Kohn -- have expressly rejected any strong link between the dollar's collapse and the oil price surge since last August.





This conveniently absolves the Fed and Bush Treasury of responsibility for the consequences of what has been their destructive and all but explicit dollar devaluation strategy. If the Illinois Senator rejects greenback debasement, that's the best news to date about Obamanomics


READ MORE: http://online.wsj.com/article/SB12181522鈥?/a>





Will someone with a background in economics please explain the Obama view (strong dollar, lower oil prices) vs. the Bush/McCain view (high prices the fault of supply and demand even after demand has fallen)? Is Obama right? He says a stronger dollar reduces oil prices. Is he right?
EVERYONE favors a STRONG DOLLAR.





**snicker**





Good grief.Is Obama right? He says a stronger dollar reduces oil prices. Is he right?
Any economist will tell you that. Bush and McCain will tell you that also. Noone that knows anythign at all about economics will ever say that is makes no differece at all. Supply and demand also play a huge part in oil prices. As well as over anxious speculators on the comodites market.


Oil prices are high due to a combination of economic factors, ranging from the the value of the dollar to comodites markets.
It's an illusion or should I say delusion.


If the value of a fcking dollar goes up OF COURSE you can buy more oil with less money, but that's just the influx of the dollar, it doesn't mean it's cheaper!!


If you want cheaper oil, bring up the supply of it!
Yes Obama is right but how do you strengthen the dollar without international currency manipulation? What about all of the other industries that are benefiting from the weak dollar like exports? SHould we sacrifice the jobs and those busiensses so you can cruise around cheaper?
Why, yes, he is. The lower the gold price, the higher the dollar, the lower the oil price.
Sure he was and is right. We all know that the Oil companies made these problems around election time. Gee any one that deals in Wall Street knows how they sucker in the little guy to steal their money.
Oil is traded in US dollars. When the dollar is weak (as it is now) it has a big impact on the cost of oil and oil products.
Supply and demand reduces oil prices. Economics 101.
As world oil prices are set in dollars, yes.





The fall in the dollar was one of the reasons for the rise in oil prices.
Barry don't know squat about anything.


Gas prices in Massachusetts are down to $3.64.
It would seem so, but why not ask an expert, not me.


http://biz.yahoo.com/ap/080808/oil_price鈥?/a>
Yeah, that makes sense. Everything is relative.
you bet ye he is.
yes, but he, is not the first to say this
*LOL* Democrats were devaluing the dollar long before Bush1 took office and no one noticed but me I think. Where were you?





The dollar does have an effect on prices. A strong dollar means more imports and less exports and vice versa.





Now go ask Obama what Bush did to weaken he dollar and what he's going to do to strengthen it. Then get ready or a song and dance answer. I can say this with certainty it WILL be a song and dance.





Go read the US Constitution and find where it empowers the President to have any real control over the economy. Feel free to E-mail me the section where it's written. I could have missed it. But I don't believe that power is given to the President.
Of course. Ron Paul has been preaching that forever. In fact, last week he held Congressional hearings to illustrate this point, which is likely where Obama got the idea.





Which would be great. The whole POINT of what RP is doing is to raise issues hoping they'll be adopted into policy. He is also introducing bills on these subjects.





Unfortunately to GET a stronger dollar you have to cut spending and borrowing. When you spend more than you have, the treasury has to print more money to make up the difference. More dollars with the same value behind the lot makes each one worth less. When a dollar is worth less you have to pay more of them to get the same amount of ...everything, starting with products with a globally competitive market, like oil. Obama may like a strong dollar, who doesn't? But what does he intend to do to get there? He has the most expensive spending plan of any of the candidates this year.
Yes he is right but that is not a revelation it's pretty much common knowledge.





The one thing that irritates me about this discussion of oil is.





The Democrats say we need to reduce our dependency on foreign oil.


Agreed.





So the Republicans say we need to boost our energy output, Nuclear, Alternative fuels, Drill for more oil etc.





The Democrats say, that won't help with the price at the pump.





They change the argument to suit themselves and contradict themselves in doing so.





There is a Bi-partisan bill, 10 Dems and 10 Repubs., crafted to make us energy independent.





The worst speaker in the history of the US, Pelosi, won't even let it come to the floor for a vote.





I am an Independent leaning toward Obama, but giving that woman one ounce more of power is dangerous to this country. I wish I knew how we the people could have her removed. Then Obama would have my vote.
Its is both.





China, India, Russia are all growing, all using a lot of oil (and they are exempt from Kyoto so they can use as much oil as they can afford). So demand did fall in the US along with some other countries, but the booming economies of developing nations push demand much higher then we caused it to drop.





The devalued dollar also caused the price to increase. If something crazy happened today and the dollar was worth two times as much as it is today then oil would cost half as much. Just watch the value of the dollar, it the value goes up, then oil will go down, and the exact opposite will happen if the dollar value goes down.
obamas Afghanistan dollars are good