I don't suffer fools well. I cannot stand those who shirk responsibility or watch pop culture TV and movies and have the audacity to comment on what is going on within the economy. I am becoming concerned because the GUM (great unwashed masses) are beginning to debate whether the rise in oil prices are due to a weak dollar or speculation. Well duh!!!!
Of course a weaker dollar / loose monetary policy is responsible for rising energy prices. The argument over whether it is the weak dollar or speculation which is responsible for higher energy prices is moronic.
A weak dollar IS causing more speculation in certain commodities. If one owns dollars and needs to spend dollars once invests in vehicles which help to maintain purchasing power. This is why people invest in gold, not because the industrial uses of gold are expected to increase.
Anyone who has access to a Bloomberg terminal can run a chart which indicates the correlation between a weaker dollar and higher oil prices. Run it back 20 years and the relation ship is still there.
Raise rates and you lower oil prices. Unfortunately that will cripple banks. Many were concerned that we are helping to bail out Bear Stearns by committing tax dollars to guarantee $29B of structured asset-backed debt. In actuality, consumers are bailing out the entire financial system at the pump.
Damn those hubristic bastards.
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