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Rising Energy Costs and the U.S. Economy
June 2008 was the second worst June in the history of the Dow Jones. The only June that was worse was in 1930, at the beginning of the Great Depression. That’s not exactly encouraging.
Why was June so bad? The dollar fell. We have the U.S. Federal Reserve to thank for not defending the value of the national currency. The Fed governors talk the game of defending the dollar. But then they meet and don’t take any action, such as raising interest rates.
I understand that the Fed does not want to raise interest rates. That would just plain hit the economy…
16Jul2008 | Energy and Oil | Comments Off | ContinuedContrarian Takeaway: Prices in the “Out-Months,” the Candlesticks, and the Indicators Suggest a Screeching Halt to the Rise in Crude Oil Prices
Since March 17, Gold has declined nearly 13%. So much for the “inflation hedge” hypothesis. Whatever happened to the “inevitability of $2,000 Gold because the fundamentals require it?” Proponents are noticeably quiet these days. Is Crude Oil headed for $200 per barrel? Maybe so; but maybe not quite yet.
As in the case of Gold, there is no shortage of fundamental reasons why the price of Crude Oil must increase. What do those who are “on the inside,” doing the actual trading with real money, think about the future price of crude oil? Yesterday’s closing prices of the crude oil futures contracts…
11May2008 | William Kurtz | Comments Off | Continued
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