Letter Re: Peak Oil and the Real Value of the Dollar
Dear Jim, For the last 70 years, the dollar’s value has evffectively been pegged to oil. We can thank FDR for that, since he removed Gold from backing the dollar. I suppose it worked out okay, but now we have a problem. The oil is running out. You’ve seen it at the gas stations, and the price of Brent crude is $124 per barrel, and domestic USA crude is $112 per barrel. The USA only produces 5.5 million barrels per day (mbpd). The balance of the 19 mbpd is imported, mostly from Canada, Mexico, Venezuela, and Nigeria (not Saudi …