CaptainJJack

11 Months After the Oil Bubble Burst

This is clearly a China dollar play. We are still running a huge trade deficit with China and it doesn't want to invest anymore in dollar denominated bonds.

However, if they in any way signal they don't want anymore US bonds, their trillion dollar current holding of US bonds takes a hit.

SO, they buy commodities, especially oil, with the new dollars they get from the US.

This also explains why Natural Gas has lagged since it is produced and sold pretty much in the US. There is no China dollar play involved.