The two biggest factors in oil’s high price are the weakness in the U.S. dollar’s exchange value and the liquidity that the Federal Reserve is pumping out. In an effort to forestall a serious recession and further crises in derivative instruments, the Federal Reserve is pouring out liquidity that is financing speculation in oil futures contracts.
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Showing posts with label FED. Show all posts
Showing posts with label FED. Show all posts
Saturday, June 14, 2008
Why Oil Price Is High - Fed Printed Way Too Many Dollars
CNN: Get Used To High Prices.
The Fed has a mandate to keep inflation in check. But global forces and worries about the U.S. economy will keep prices high for the foreseeable future.
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Tuesday, April 15, 2008
The Madness of Ben Bernanke
The dollar is in a tailspin, the trade deficit is growing and a recession is on the horizon. The American way of life is in serious danger. But the head of the Federal Reserve keeps on pumping easy credit into the system -- a crazy policy that will worsen the crisis.
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