MacroEconomist

John Hussman: Is There a Possibility of $60 Oil?

There is only one problem with the bears' prognostications on oil. Unlike housing, it's supply is limited nor can it be produced by fiat.

Both oil and gold have been in a bull market ever since the United States attempted its "reflation" in 2001. Simply inverse a chart of real interest rates and it tracks gold and oil beautifully.

The bull moves in these unlevered assets can only end when the United States and the world makes the price of money acceptable and appropriate again.

Bernanke thus far has shown you the route he wants to take is status-quo.