Saturday, June 14, 2008

Why Oil Price Is High - Fed Printed Way Too Many Dollars

The two biggest factors in oil’s high price are the weakness in the U.S. dollar’s exchange value and the liquidity that the Federal Reserve is pumping out. In an effort to forestall a serious recession and further crises in derivative instruments, the Federal Reserve is pouring out liquidity that is financing speculation in oil futures contracts.

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6-2-2026

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