Friday, September 14, 2012

Crude oil scoffs at Fed as it zooms past $100 per barrel

The major issue with central banks is that they are extremely myopic to the real economy.  They live in an ivory tower of data, and charts, stocks, and Wall Street, and have little comprehension regarding the lives of the 99%.

So when Bernanke finally chose the path of least resistance, and fired up the printing presses on Sept. 13, it did not take long for crude oil to zoom part $100 per barrel, and push gas prices in many areas over $4 per gallon.

Crude futures soaring by nearly 2% overnight to over $100 is what all those evil, evil speculators at work looks like. That, or the Federal Reserve's "all in" bubble reflation policy perhaps. No, it has to be the speculators: the margin hiker-in-chief said so. And for those who are surprised by Crude's move into triple digit territory, which in turn will send gas prices to the highest they have ever been for this time of year just in time for the election, wait until the reality of $150 oil is priced in, which as we explained yesterday, is the matched price for a $4 trillion Fed balance sheet. - Zerohedge

$100 is not new, but it appears to be only the beginning.  With the Federal Reserves new monetary policy of bond buying and monetization being open ended, expect the price of crude oil, which is valued in U.S. dollars, to continue to rise.

Those in the ivory tower known as the Federal Reserve have little concept of what inflation really means to those in 99% who must experience ever increasing prices in food, energy, rent, and items that don't fit into their paradigm of 'assets'.

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