After investing in high-tech stocks and real estate loans for years, legions of speculators have now discovered commodities like oil and gas, wheat and rice. Their huge investments are pushing prices up to unprecedented levels -- with serious consequences for ordinary people's quality of life and the global economy.
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Showing posts with label Prices. Show all posts
Showing posts with label Prices. Show all posts
Saturday, June 14, 2008
How Speculators Are Causing the Cost of Living to Skyrocket
Why Oil Price Is High - Fed Printed Way Too Many Dollars
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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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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Friday, June 13, 2008
Oil and Food Push Consumer Prices Higher in May
Inflation hit hard in May as prices for a wide swath of consumer goods rose at their fastest pace since November, underscoring warnings from central bankers and adding to a growing consensus that the Federal Reserve could raise interest rates by the end of the year.
The Consumer Price Index, which measures prices of a batch of common household products, rose 0.6 percent last month, with much of the increase coming from high fuel costs. The nationwide average for gasoline topped $4 a gallon last weekend as the price of oil reached record levels.
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