Like night following day – this stuff is not hard to figure out:
Crude oil rose, capping its biggest monthly gain in a decade, as the dollar weakened against the euro, bolstering the appeal of commodities.
Oil climbed above $66 a barrel to a six-month high as the dollar declined beyond $1.41 against the euro for the first time this year, making raw materials such as oil and gold an attractive alternative investment. Prices also gained as U.S., and Asian indicators pointed to a global economic recovery.
“The devaluation of the dollar is leading to the revaluation of energy and commodities in general,” said John Kilduff, senior vice president of energy at MF Global in New York. “This is a monetary-based rally. The market is focused on the future and ignoring the fundamentals of the present day crude-oil supply and demand picture.”
The wife asked me last week why gas prices were rising when there was no shortage – I opined that it was probably being run up by people dropping dollars and dollar-denominated securities because Obama is leading us right into high inflation, and maybe hyperinflation. No one with any sense wants to hold on to dollars right now – buy land, buy commodities, stock up on canned food: buy anything you can which has intrinsic value and you’ll come out ahead under Obamunism.
Now, there could be a silver lining in this – the collapse of the dollar’s value means things we grow, mine and make will become cheaper on the global market. Given this, if we enter into a crash program of increasing the amount of stuff we make, mine and grow, we can start to work our way out of this. The problem is that Obama and his Democrats don’t even suspect this – its outside of their worldview, and thus they will be impervious to any attempt to explain to them that even their boneheadedness can now be worked to our advantage if we stop being boneheaded.
We’re about to enter into the very worst economic times we’ve ever experienced. A bit of poverty will, I think, be salubrious for us in the long run. We elected the stupidest man we could have carrying on the stupidest possible policies over the past 75 years. Hopefully what we’re about to go through will teach us our lesson.
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