Quote:
Originally Posted by IllTestYourGirls
dont forget this guy "no really. Inflation is only 2%"
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yeah, strong dollar policy
chart of FED liquidity additions into system and commodities rise (ETF DBC which tracks basic commodities):
Both of them correlate...
So you have "technically bankrupt" wallstreet banks (bankrupted without FED repo operations) trying to get out of their own mess by playing a commodity boom. Great.
Add to that mix recent devalution of USD by FED monetary policy, causing everyone and his gradmma speculate in hard assets like oil and food....
Of course there are supply problems too, but when you add to the mix speculation, it makes things only worse.
By the way, Central Eurobank head told it few weeks ago: "to cut interest rates at this point would be the same as taxing the people to bail out the banks. Cost of extra inflation would be the ultimate sign of moral hazard to save banks."