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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: John Vosilla who wrote (68514)8/19/2006 2:52:34 PM
From: bart13  Read Replies (1) of 110194
 

Isn't much of that liquidity pump due to rising energy prices and the war effort?


In my opinion, no.

Its just excess straight money and credit creation due to central bank actions and the effects of fractional reserve - both of which from a year or two ago (the lag effect of monetary and credit policy).
If you want to say that some of the money was created to finance the war effort, that's fine by me too.

But the largest reason for rising energy prices in my opinion is inflation, followed by peak oil supply issues and the general fact that we're in a hard assets or commodity cycle.
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