Will the U.S. dollar ever be strong like it used to be and will gas prices ever go back down to a $1.50/gal?

Question

I keep hearing that the oil scare is just a hoax and i was just curious because we've only been tapping in for about 90 or so years, and it is kind of hard to believe that all the oil in the world will vanish in a few decades. Also, the weak dollar, what will it take to bring it up?

Answer 1

Oil may go down for a little while but eventually go higher and higher because there is a finite amount of oil in the ground on the earth, and as more people in the world use more and more of it, the supply will decrees very fast making price go through the roof. If a sustainable alternative to oil is created, then oil price would go down, because no one would need it any more, therefore demand for oil would be low. The Dollar will go up again but will take a year or two to do it . The low dollar is a good thing for domestic industry in the USA.

Answer 2

The price of oil goes up because the value of the dollar goes down. The Arabs aren't dumb. They are tired of being paid in almost worthless dollars. At some point they may only accept a gold backed currency. The dollar will not recover until dishonest politicians (both parties) stop buying votes by giving away money they don't have.

Answer 3

The dollar goes through up-and-down cycles; right now it's obviously WAY down. It will eventually go up because a weak dollar reduces the amount of US tourists going to other countries. Those countries will do what they can to help the dollar once they start feeling the pinch.

As for oil, prices are high partly because of stronger demand from emerging economies like China. We can help ourselves by trading in the guzzlers for economy cars, just like we did in the 80's.

Answer 4

The US dollar will be strong over time and gas prices drop but not as it used to be.

The US is the No. 1 economy in the world. US dollar is also a world trading currency to finance international trade.

For the US in international trade, if the US dollar is strong, its imports will be cheap, its domestic demand will imporve, its inflation low and its economy will imporve.

If the US dollar is weak, its imports more expensive, weak domestic demand for its goods and services, inflation high and its economy weak.

The best way to increase the value of the US dollar is to reduce its trade deficit with its international trading partners.

Answer 5

Here's what it would take to bring the dollar back up:



The politicians need to begin putting money towards repayment of the national debt, rather than pork barrel projects.



The politicians also need to fix the baby-boomer-retirement-crisis, before it becomes a true crisis.



The oil may not run out, but the easy-to-drill-for oil will.

Once that happens, the cost of drilling will go up, and the oil companies will have to either pass that cost along to consumers, or will have to go out of business.

Answer 6

Oil is going to eventually drop in price. There's way too much oil out there. Also, with a global slowdown, oil should drop in price.



The only way to keep the price of oil high is to create tension in the Middle-East. If it looks like the US is going to war with Iran, than this will help to keep the price of oil high.



I think the Dollar will eventually get stronger. Other countries are struggling because their currencies are too strong. These countries are doing whatever they can to make their currencies weaker.



Good question.