If the US dollar continues to tank against other major currencies, things could real bad real soon. Oil is traded in US dollars. That is the main reason why Oil will soon reach $100 a barrel. It is not that oil has become that much more expensive over the last couple of months, it is just that the US dollar is tanking. At some point in time, the world’s major oil producers will insist on being paid in Euros and not dollars. If and when that happens, the value of the US currency will plummet and the cost of Canadian goods will skyrocket.
Thomas Walkom, one of Canada's best columnists, has a good article on the dollars decline. http://www.thestar.com/Business/article/274630