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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 389.05+0.4%Dec 10 4:00 PM EST
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To: THE ANT who wrote (108944)12/14/2014 11:05:05 PM
From: carranza21 Recommendation

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RJA_

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In some very complicated operations I don't pretend to understand, the Fed has begun to drain the huge stock of banks' excess reserves and at the same time raise short term interest rates while leaving long term rates low. Seems like the first baby steps towards raising rates.

soberlook.com

and

soberlook.com

I wonder if the PhDs at the Fed have considered the price of oil in all this.

The Saudis and their OPEC buddies are doing more to spur growth in the US than the Fed seems to have done. And more quickly. Their intentions are not entirely benign, however, as it seems that one of their goals is to put pressure on US oil production which has skyrocketed thanks to fracking. Mr. Putin is not happy as the value of Russia's oil exports will go down significantly, no doubt creating some domestic political issues for him and, coincidentally, putting a lid on some of his adventures. Putin takes the harder hit, for sure.

If I were an American policymaker, I'd somehow find a way to support the domestic frackers so that they're incentivized to produce. Our national security is too important to allow us to continue to depend on Mid East oil in this crazy day and age.

If global economic growth takes place thanks to lower oil prices, oil demand will go up and so will prices.

This is all good since any growth related to lower oil prices would not be a function of finance but to more or less organic factors - prices actually set by supply and demand for energy.

Could it be that we're entering a virtuous economic cycle? One we can't presently appreciate until growth spurred by a lower price of oil shows up? One that sees us reduce military spending designed to protect ME energy sources?

The stock markets surely don't think so.

Who knows.
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