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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: patron_anejo_por_favor who wrote (63837)6/15/2006 3:46:54 PM
From: gregor_us  Respond to of 110194
 
Ironically, a Central Bank using Monetary Policy to attack

commodity prices and percieved speculation in commodity prices may wind up simply clearing the decks for a powerful reload of momentum. If price spikes sow the seeds of their own demise, such intervention chokes off the price advance, preventing the blow off and ensuing crack.

As I have mentioned before, CU had already baked its own cake this year with the wacky move to 4.00 per pound. You gotta be crazy to try and tinker with something like that when, if your goal is to get CU lower, that's gonna happen anyway.

Oh well. At least we're hearing from Bernanke (and his set-up man Greenspan) that they surrender to energy prices. That's a relief.

Regards,

LP



To: patron_anejo_por_favor who wrote (63837)6/15/2006 3:55:41 PM
From: stockfiend  Read Replies (1) | Respond to of 110194
 
It's not insane to think the fed should lean against crude prices if you believe there is something more to $70 oil than just supply and demand and geopolitical risk premiums.

Maybe, just maybe, we have $70 oil because oil-producing nations have a bit less faith in fiat currencies, in particular, the dollar.