Inflation increases incoming... this petro dollar thing is going to cause a lot of issues. The US needs to pay for some of their oil soon in BRICs currency and will push the USD down eventually. Hyperinflation in the US is likely to follow as the US debt crisis blows out. No one buying their treasuries. Argentina style economy likely to follow.
And if the NeoCons decide they need a direct war with Russia, then maybe this another reason the oil price is rising.
There were only 3 sessions below $75 and we have already had 2 closes above $80. I wonder about all those who were cheering that the oil price was going to drop and stay down. Good ol' Warren has positioned well again. Buying the best oil companies. Some vids were saying a while back, oil to $150-200 a barrel. If that happens then total global implosion. If we break $90, then position accordingly.
I also watched a EuroDollarUni video that suggested to watch out for the trio of Bonds rising, USD rising and gold rising. That warns of financial Armageddon. I am not sure how this might play out if the USD starts to lose its usefulness. I am seeing bond yields in other countries starting to fall. Do we use outside of the US as a new default? If true, then all past behaviours are out the door and change their validity.
A falling USD with higher inflation will make their stock markets rise. But it doesn't mean that is a good thing. Look at Mexico and Argentina stock markets.
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