Quote Originally Posted by GGT View Post
Tell the UK what they're doing wrong, then. When OPEC has control over the price of oil, all oil-dependancies are tested. Remember US summer two year ago, when gas hit $4/gallon?
What about it? Petrol prices in the UK are higher than the summer of two years ago, currently at an all-time record. Is that not the case in the States? I didn't think it was, but why would one nation have an all-time record and another be less than 2 years ago? Because oil is priced in dollars and our currency has fallen 25% - so oil price in pounds has suffered 25% inflation just from currency essentially, as I said.
The pound sterling is pegged to the USD. Most commodities (and oil) are.
No it's not, and pound sterling is a currency not a commodity
Quote Originally Posted by GGT View Post
How do you figure that? What do you think the pound sterling is pegged to?
Nothing, like Wiggin said. The pound sterling isn't pegged to anything, we have a freely floating exchange rate.