Obama's lax dollar is to blame for oil's spike, not bankers

[reform]

http://www.telegraph.co.uk/finance/oilprices/8482960/Obamas-lax-dol...

 

"In the past two weeks, the US President has asked the Department of Justice to investigate whether Wall Street speculators are manipulating the oil market. Maybe he thinks that it is.

However, next time you fill up your tank and the price has increased, don't blame investment banking speculators for the rising prices - they are a tiny part of the problem. The blame lies with loose monetary policy in the US, plus high taxation by the UK Government, of course."

 

"The US has continued to devalue its currency by allowing the Federal Reserve to print dollars like they are going out of fashion. This has boosted the price of all commodities – and the trend is likely to continue for the rest of this year.

Commodities such as oil are priced in dollars. When the dollar falls, these commodities – be they copper, wheat or oil – become cheaper in other currencies. This prompts "speculators" to buy. Prices of raw materials have therefore risen on a sea of dollar liquidity – fuelled by cheap money and quantitative easing.

This is the reason that the gold price keeps hitting all-time highs, as US policy causes faith in "fiat money" to crumble. No country in the world has its currency backed by gold – and the plan to spend America out of the downturn is making a mockery of the country's "strong dollar" policy."