[KlaraNovikoffaZ]

This is why OPEC is pushing so hard to get oil repriced in some other currency, because we're sitting back and letting the dollar deteriorate to nothingness making the value of their exports equally worthless (oil prices do track inflation/deflation, but it's a slow correction).

If we re-raised interest rates then foreigners would be buying dollars and US debt in larger amounts, savings rates would rise even further since holding loans would be more attractive to investors, credit would flow better as more lenders enter the picture, etc.


If you added a dollar gas tax on top of this, you can continue to keep oil consumption declining at the same time you get more money flowing back in chasing the prevailing lending rates. Plus, a large tax would bring in a gusher of money back into the Treasury to repay debt we already wrote up.