Dollar falls through support level, oil hits new high

From bad to worse in the GOP economy. The dollar has fallen through a very important support level $1.50 - €1 so if the greenback fails to bounce back quickly this could hit the free fall that many have been predicting. So what does this mean in America? Exactly what happened yesterday, which was a nasty inflation (stagflation) report courtesy of high energy costs.

Oil hit yet another new high, breaking through the $101 figure. Looking at the trends in oil, while it could drop back into the $80s though realistically, there is little preventing another climb. Just about anything can make the prices go back up (Turkey invading Iraq, hurricane, rumors, you name it) and now that the $100 support level has been tested and kicked aside it will be much easier for it to go up again. The Democrats really need call out the GOP and McCain in particular on this. These results are directly linked to years of bad policy by the Republicans. If we fail to drive this point home early and often, shame on us.