Billy Ford

Why Oil and Gold Are Headed Much Higher

Can someone explain to me how the dollar will depreciate when the basis for this valuation is relative to other currencies. This is a global issue, and i would expect other countries especially emerging markets to be affected the most. The main relationship that the dollar is valued against is the euro, which all of those countries are doing some of the same bailouts that we are. So if anything I would expect to see the dollar continue its rally since it has been so oversold.

As for oil, I still think too many people are overlooking what impact oil has had on the turmoil that we are in today. We are just now beginning to feel the pain of what $4+/ gallon has had on consumer spending. If you are already on a tight budget, and then your fuel costs go up 100$ -$200/ month, no wonder people with subprime loans were having trouble paying their bills. Not that I am taking any attention off of the bad loans, but am just observing that these are the people that are stretched so far thin to begin with and any added expenses send them down the drain. Oil at $148 was ridiculous, and there was no justification for it, I dont care what anyone says. I could understand a healthy move to the upside, but going from $50 to $150 is obsurd and I hope that we do not have to see it again any time soon.