The OPEC output jumped during May, June, and July to close to their current maximum. This coincides with a drop in demand by the biggest consumer, the US. Developing countries are increasing their oil demand and China is expected to have huge demands for any foreseeable future. ( click here )

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The drop in oil prices has provided a temporary strengthening of the dollar.  Instead of recognizing a calm during the storm, the financial community are turning blind eyes on any cautionary warnings.

Reuter’s quoted financial strategists as optimistic with the price drop:  "It looks like we are finally getting the break we've been waiting for in terms of slowing down the inflation spiral that has been taking place, . . You have a tremendous rise in the dollar, and that's putting pressure on crude oil, which is helping to buoy U.S. equity markets."

(Cheaper oil may lift stocks; CPI on tap; http://www.reuters.com/article/federalReserve/idUSN1036678120080810)

Before cheering and toasting stock points, perhaps investors --  and humanity as a whole  -- should consider other factors. The dollar’s current upswing is certain to be short-lived and inflation will squeeze budgets even harder with the next downleg. FannieMay post an even larger loss than expected on Friday.  The unemployment rate has hit its highest level in four years.  The price of food around the world may be a better indicator of economic viability and right now food appears to be a better ‘gold’ standard than precious metals or oil.  

Authors Bio:
BS's and MS in math, chemistry, and geology. Have worked in rad con, chem labs, environmental monitoring, and education. Spent 2 years with research lab developing methods for remediation of contaminated sites (organic solvents and biological warfare agents). Have taught math and science in public and private schools, as well as college and university. Have experience in custodial services as a fall-back profession: when we no longer need educators, we will still need custodians.
Science is a passion. Music is the window.