What’s up with this?
“Investors who have been using the dollar as a stable spot in which to stash funds during the recession have flocked to riskier assets this week, with oil close to the top of the list. Crude-oil futures are up about 5% after spending most of last week below $70 a barrel.
Oil serves as a protective investment against inflation caused by a weaker U.S. currency, with dollar-denominated crude becoming cheaper for holders of other currencies. The euro hit a 2009 high of $1.4601 on Wednesday before the dollar partially recovered, in a move that also knocked oil off an intraday high of $72.52 a barrel.
“At this point we can’t say for certain we’ve found the bottom in the dollar, so we really can’t say for certain we’ve found the top in … energy prices,” said Brian LaRose, senior technical analyst with United-ICAP.” – Today, Wall Street Journal
8 Comments: Trackback URL | Comments RSS
November 6th, 2009 at 2:21 pm
This is all propaganda.
The USA made a deal with OPEC in ‘71 in which the Arabs could control the production(price) of oil as long as every drop was bought & sold in USA dollars. Every country must convert to dollars to buy oil. This is the only reason that USA currency has value. This deal came quickly after France asked the USA to convert their trillion dollars worth of USA cash to gold. The USA didn’t have that much. It was actually an act of international bankruptcy. So to avoid the catastrophe the USA abolished the gold standard in lieu of this agreement. France was pissed off to say the least.
This is the “REAL” reason Saddam was put to death and Iraq was invaded. There was no WMD’s. It was all BS to get you behind the invasion. Saddam was selling oil to everyone in any currency EXCEPT dollars which could have eventually collapsed the USA market. Iran and Venezuela are still doing it much to the ire of the USA.
November 6th, 2009 at 4:01 pm
Your quote proves the opposite: investors, through speculation, can drive up the price of oil. Oil is prone to wild fluctuations.
If you want to speculate on commodities, you’re only one rung up from somebody playing black jack at a casino.
November 6th, 2009 at 8:14 pm
commodities generally are, because the FEd and treasury have put WAY too many dollars out there.
November 6th, 2009 at 10:36 pm
Except around fire.
November 7th, 2009 at 2:09 am
quilted charmin is more stable than the dollar!
November 7th, 2009 at 7:30 am
Read up on tulip mania and you well have your answer
Just because many believe it to be so does not make it true
November 7th, 2009 at 1:39 pm
It makes sense. Almost anything is better at holding value than our funny money.
November 7th, 2009 at 7:45 pm
My son trading crayons in preschool is more stable then the dollar.