Wednesday, April 20, 2011

Currency-Induced Inflation Driving Asset Prices

Currency-induced push inflation has been the dominant driver of price since 2008. Nothing really changes. The vast majority (99%) of the public lives in the economic paradigm of the previous expansion or the world they have come to understand. By the time they realize their standard of livings (i.e. lives) have changed and cannot be easily restored, disinformation, MOPE, and reality-scripted headlines will have hindered actions necessary to preserve wealth.

West Texas Intermediate Crude Oil (OIL) AND Oil to Gold Ratio (OILGLDR):


Headline: Oil up above $109 on signs of strong US demand

Oil prices rose above $109 a barrel Wednesday after a report showed U.S. gasoline supplies fell for a second week, suggesting higher fuel costs haven't yet curbed demand.

A weaker dollar -- which makes oil cheaper for investors holding other currencies -- and rising equity markets in Asia and Europe also helped boost oil markets.

Source: finance.yahoo.com

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