Fuel prices at 6 year low all hail Obama

[annsni]

Gas prices are down. Now we have a little extra money to cover the extra costs of health insurance and food.

 

[InTheLight]

Gas prices are down. Now we have a little extra money to cover the extra costs of health insurance and food.

Reminds me of Bush's tax cuts. They basically went to pay for higher gasoline prices.

 

[777]

RevMitchell - yeah, if A causes -B to happen, it doesn't mean that A causes B to happen, or vice-versa.

I don't see what QE2 has to do with it. QE is a policy whereby interest rates are lowered so that banks have cheaper access to money with which to make loans. And banks don't make loans so people can buy gas.

Yes, QE2 weakened the dollar but the subsequent rise in the strength of the dollar since QE2 ended is nowhere near the proportional drop in oil prices.

The US now produces more than half its oil needs and it's illegal to export crude oil, another reason the change in the strength of the dollar has little to do with falling gas prices.

QE does cause interest rates to be lower and does deflate the dollar. International commodities are the first to rise when the dollar is low. I am not just talking about QE2 here, more about the end of QE3. What I am saying is that increased production and the end of QE3 are probably the reasons prices have fallen so low so fast.

The dollar had to rise: http://www.cnbc.com/id/101676957 to enable that.