That is a good point about the inflation factor. It sounds like oil typically runs adversely to the dollar & other commodities for many reasons.
The Fed has their hands full with trying to prop up our troubled credit system, so I think they do not dare raise interest rates any time soon. Inflation seems like the furthest issue from their minds.
As for government spending… it really doesn’t matter whether we’re dumping $$ in military actions, into saving Medicare & Social Security, into stimulus checks, or whatever… we need to wake up & start demanding our leaders push for fiscal responsibility. Currently, it seems like none of us consituents are willing to give anything up. Some have suggested that increased oil prices is good in that it forces us to stop using so much & seek alternatives. So maybe we will eventually stop defacing our currency via increased national debt when our foreign investors finally start demanding a higher return on our government securities. Although I suppose they already are demanding higher returns which is why our dollar is sucking sand.
