Not so fast?



A sinking dollar (with no US inflation) together with a rising oil price makes wonders for US shale drillers, and strangles other producers in other parts of the world.



While US drillers get more dollars for their oil, they paid same amount for equipment that is bought within the US. Absent inflation, as it is the case today.



Take the Saudis for instance, they get more dollars for their oil too, but in turn such dollars buy less goods (outside the US) in return.



The price of oil is probably one of the few efficient tools available for the US to prolong the pretrodollar system.