How Does an Oil Crisis Impact the Dollar? [View article]
Interesting piece, but not sure that lessons from the Arab oil embargo and the Irani oil embargo are of much use to us now. Better information comes from watching the three-way dance among Bernanke, the Dollar, and oil, as that has predictive value. Fed funds look stable for a few months, then likely to rise this fall, which will strengthen the Dollar, which will drop oil to $100 and gas below $3.00 so incumbent politicians have a snowball's chance of being re-elected.
Add to this that Trichet will continue quietly devaluing the Euro through his printing presses and the Dollar doesn't look bad in the EUR/USD pair through November, at least. After that Bernanke may turn into Paul Volcker or he may finish destroying the economy.
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Interesting piece, but not sure that lessons from the Arab oil embargo and the Irani oil embargo are of much use to us now. Better information comes from watching the three-way dance among Bernanke, the Dollar, and oil, as that has predictive value. Fed funds look stable for a few months, then likely to rise this fall, which will strengthen the Dollar, which will drop oil to $100 and gas below $3.00 so incumbent politicians have a snowball's chance of being re-elected.
May 23 00:03 am
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All Comments by sedek »How Does an Oil Crisis Impact the Dollar? [View article]
Add to this that Trichet will continue quietly devaluing the Euro through his printing presses and the Dollar doesn't look bad in the EUR/USD pair through November, at least. After that Bernanke may turn into Paul Volcker or he may finish destroying the economy.