This morning Oil rose to a record above $114 a barrel in early trading. Its important to note that the rise was due to the drop in value of the US dollar relative to other major currencies. So while most news agencies and talking heads have been screaming about high gas prices, I will go the other route.

The fall of the US dollar is an important part of any recovery. As the dollar drops, US Assets (companies, resources, stocks, etc…) will all look relatively cheap to foreign investors. Those foreign investors will then spend money acquiring things away from the US economy, keeping it afloat.

Here’s where things start to get interesting. Forget the uproar down south about foreign workers taking jobs away from Americans. At this pace, in a couple of years we’ll see massive uproar on American companies being taken away from Americans. This is the free market at work. Prepare to live with it.