http://www.npr.org/templates/story/story.php?storyId=90041682

"Investors, of course, are always looking for a place to make money. But last year, Williams says, there were also the subprime housing market and stock market to invest in. Oil was one option among many. Now, it looks like the only option.

"But here's the problem that's created: You got that good idea because you saw oil going up and nothing up — so did a whole bunch of other people," Williams says. "What happens when a bunch of people want something they didn't want before? The price goes up."

This is called "speculative investment." People buy oil not because they want oil, but because they are speculating that oil will keep going up.

Now, here's what's interesting: The weaker the dollar, the more this happens. Investors turn away from U.S. investments — Apple computer or treasury bonds, for example —because the dollar keeps losing value. They don't want dollars. That makes oil even more attractive, which sends the price of oil higher. That, in turn, weakens the U.S. economy, which sends the dollar lower."

It's the whole free market versus life's essentials argument.

I am reminded of those Enron trader phone calls:

"In the now infamous Grandma Millie exchange, recorded on Nov. 30, 2000, two traders, identified as Kevin and Bob, discuss demands by California officials that electricity-generating companies and traders pay refunds for price-gouging. They also refer to the disputed presidential election, which was as yet undecided.

Kevin: So the rumor's true? They're [expletive] takin' all the money back from you guys? All those money you guys stole from those poor grandmothers in California?

Bob: Yeah, Grandma Millie, man. But she's the one who couldn't figure out how to [expletive] vote on the butterfly ballot.

Kevin: Yeah, now she wants her [expletive] money back for all the power you've charged for [expletive] $250 a megawatt hour.

Bob: You know -- you know -- you know, Grandma Millie, she's the one that Al Gore's fightin' for, you know?

Later in the same conversation, Kevin and Bob express little sympathy for Californians.

Kevin: Oh, best thing that could happen is [expletive] an earthquake, let that thing float out to the Pacific and put 'em [expletive] candles.

Bob: I know. Those guys -- just cut 'em off.

Kevin: They're so [expletive] and they're so like totally -- --

Bob: They are so [expletive]."

Interesting how these jackals throw Al Gore into the mix...