Southern Pacific Resource Corp STPJF

RE: RE: Paul Craig Roberts: The Political Theater

[LeGagneur]

As Dr Paul Craig Roberts stated "today the US$ traded against the Swiss Franc $1/ 80 swiss cents, when I was a young man it was $1/ swiss 420 cents. And the decline of the US dollar has escalated this year."

Think about that and the implication if your a buyer of oil from a hard currency cuntry and also what this really means for the oil producers.

A person with a Swiss Franc economy in reality when buying oil today pays some 5 times less ( at $1/ 80 swiss cents) for his oil  than what was the case when you had the ratio ($1/ swiss 420 cents). So for these economies it sure can not be argyed the cost for oil has increased.

Compare then this with the oil producer that has to accept US dollars. They have within the very same time frame in real terms actually lost 5 tiomes purchasing power. 

Bottom line it's not the oil prices that is hurting the economi its the currency value depriciation that is hurting both those living in soft currency regions (e.g like the US and Euro Europe) of the world as well as oil producers all over the world having to accept UD$.