High oil prices hit economy hard

Not only is the dollar hitting 30 year plus lows, now wholesale prices shot up the highest amount in 34 years. In Europe, where the euro has been strong (too strong, really) we have not noticed the increase in oil-related costs because oil is sold in dollars. The price at the pump for gas is still hovering around €1.35/liter or €5.11 per gallon or $7.50. This is about the same as it was a year ago and even two years ago, on a euro cost basis. The big difference is the collapse of the dollar. When some people in the media and in politics say the weak dollar means nothing to Americans who are staying at home, this is where they are wrong.

European prices are already painfully high, though at least they are not moving upward. The increase gasoline costs impact driving, heating, food shipment costs and more. No matter what Dick Cheney thinks about the US economy being resilient to high oil costs, regular people are feeling the pinch.