Dollar and Oil Watch — Perhaps the US Really is Becoming a LCC

As I struggled to lift a ridiculously small amount of weight in my gym earlier this week -- I figured it was time for a blogger to exercise more than just his fingers typing -- I saw a headline on CNN that oil prices had reached an all time high and the dollar was at an all time low against the Euro. The arbitrager in me immediately jumped to the conclusion between bench presses that given the relative short distance between Europe and the US from a transportation perspective relative to Asia, that the US really does have an opportunity to become the low cost country of choice across the Atlantic. Three months ago, I joked about the subject. But now I'm beginning to feel there's more than an element of truth to it. Perhaps that explains not only the current strength of exports propping up the US economy from a nasty, sustained downturn but also the lack of capacity in many metals markets from a producer perspective. Or maybe it's just "devious forces" at work ... 😉

- Jason Busch

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.