Skip to comments.Oil rises above $85 after Fed bond buying decision (Bye Bye Dollar)
Posted on 11/03/2010 11:44:13 PM PDT by 11th_VA
Oil rises above $85 a barrel in Asia after Fed resolves to buy $600 billion of Treasurys
BANGKOK (AP) -- Oil jumped above $85 a barrel in Asia on Thursday as the dollar weakened slightly following the U.S. Federal Reserve's announcement it will buy $600 billion dollars of Treasurys to stimulate the U.S. economy.
The announcement wasn't a surprise for markets but it underlined expectations that the dollar could weaken further and push up prices for commodities including oil. Since crude is priced in dollars, a weaker dollar makes it more attractive to buyers using foreign currencies.
In its weekly report, the Energy Department said crude inventories increased by 2 million barrels to 368.2 million barrels for the week ending Oct. 29. The total was 9.6 percent more than the year-ago level and remained at the upper limit of the average range for this time of year.
(Excerpt) Read more at finance.yahoo.com ...
Australian dollar just crossed the parity mark too.
Makes perfect sense to me.
I don’t live there and never will.
Sounds like a plan...we need cash? We should be drilling our ass off as we speak...
Very good info, thank you for posting.
Or, devalue the US$, increase the price of imports and commodities, increase general prices, increase wages and incomes in a lagging manner, pay off the deficit in devalued dollars
A rising tide raises all boats. The boats tied to the pier on a short rope or at anchor will not rise. That would be banks and bond holders and creditors.
The procedure is classic governance since the beginning of time. Inflation is always the cure for failure of the governors
Our government is worried about inflation being too low. With low inflation your money buys more, but it is harder to pay down the debt you've built up. The government would also like to pay back it's own debt with dollars that are worth less because they have printed more.
It just hurts people who have a lot more savings than they have debt. Obviously our government doesn't care about such people. It's those up to their ears in debt and who are dependent on the government that are their favored constituents.
Looks like the USA needs to have a yard sale...drill and dig.
As I posted yesterday, this is exactly what Germany did. Only the Weimar inflation wasn’t a result of Weimar policies; the inflation was a result the Kaiser’s government’s financing of war debt. The Germans paid for the war by internalizing debt (selling bonds to themselves) with short term notes and monetizing it when it came due. We are doing exactly the same thing.
The Fed is not evil. There were not that many complaints about the Fed in the last decade when it kept inflation and interest rates down. It could do that because the Federal budget was more or less in balance. The only, ONLY reason we are headed for Weimar/Argentine inflation is the federal governments runaway spending. Hell, the Feds don’t even HAVE a budget. The Fed has no choice; it HAS to paper over the debt. IF the republican controlled House can create a rational budget and get spending under control, the inflation goes away.
The Weimar Republic of pre-Nazi Germany and Mugabes Zimbabwee probably had simular b.s. excuses for their inflations. But it is really just an excuse. The real reason is to finance the Fed red ink. The Govt buying its own debt. Financial incest.””
This is the method the govt will use to inflate their way out of debt. Get ready for hyperinflation folks. It’s coming.
The Federal Reserve is a privately-owned bank whose owners are not fully disclosed.
They are trying to offset the amount of money destroyed through debt default with new money created from the issuance of new debt to keep the money-supply from collapsing.
The Fed creates fiat with a few keystrokes and then purchases Treasuries and other debt instruments. No big deal if you buy worthless debt with money you created out of nothing.
“Are Americans this GD DUMB
They certainly are in Califonia...
Voted in Boxer-rocks,
Jerry “Moonbeam” Brown
approved the CA version of Cap and Trade “””
May have voted in Kamela Harris for Attorney General. She was city attorney for San Fran & she NEVER asked for the death penalty on any case she prosecuted.
Now Calif has Jerry Brown—who gave them Calif Supreme Court Justice ROSE BIRD & he may be coupled with Harris for at least the next 4 years.
This is not good for crime statistics or police morale in California.
O heard nothing.””
O and his backers heard well yesterday, but O and his minions have evil intent and that spells the breaking of the US economy, US power, and US capitalism—these are the hallmarks of this administration’s goals.
Remember that the Euro is also weakening. And both Russia and China are pegging their currencies (Russia to the Euro, China to the Dollar).
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