So last week the FED cuts rate again lower the value of our dollar. In some people's view our (the USA) country and dollar policy makes our good cheap NOT inexpensive (i define inexpensive as something that is a good value buy and that will increase in price at a later time) This was confirmed by the Saudis who have over $800 billion invested in our economy and are now nervous about their investments. That is a whole other topic that I don't feel like going into right now.
So where am I going with all this. Hmmmmm. It was very interesting what happened hours before the FED announced the cut in rates. Do you remember? The US Armed forces reported that Al Qaeida bombed a Iraqi oil line. Wow is that convenient. Humm, I'm the FED and I am about to make a terrible short term mistake that can have a long term negative effect how can I benefit from the price of oil increasing?
My crazy belief is that the FED was able to cut rates so much which would inherently decrease the value of the dollar because they KNEW oil prices were rising. Since oil is ONLY traded in USD, all nations would need to increase their USD reserves ergo stabilizing demand for the dollar.
I bet you that will make you think? Please let me know your thoughts? Am I "Mad or a Genius"
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