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Originally Posted by dippin
It doesn't matter what currency the oil is actually traded in. Currencies in these transactions are just measures of value. If the dollar loses value with regards to oil because of government printing of dollars, it also loses value with regards to the Euro in a similar magnitude, so that the amount of euros needed to buy oil and gas remains the same. Right now, prices are going up in euros and other currencies, meaning it is not the dollar's fault.
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Here is a chart of the US Dollar to the Euro.
If the cart fails to show properly here is a link:
http://www.advfn.com/p.php?pid=qkchart&symbol=FX^USDEUR
People buying oil, convert Euros to dollars, and buy the oil. Today they can buy more oil with fewer Euros or they realize a smaller increase in oil prices compared to those who trade exclusively in dollars.
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To put it another way, the only things increasing in price in dollars are commodities. If it was monetary policy and not something specific to the commodities market, prices would be going up in all sectors, but that is not the case.
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There is a tail to inflation or a delay effect. Inflation will get measurably worse long before it gets better, given current trends.