I think US Government is facing difficult options to fight inflation. It's not so easy for him to raise interest rate soonly because of Credit crunch. Actually Helicopter Ben has encountered his limits to print more money but in commodities bubble situation and in the current deleveraging era, he is still able to force the five biggest broker banks to do margin calls.
Skyrocketing oil prices was driven by imbalance between demand & supply and also caused by weakening dollar's value against other major currencies. Free market system has became doubled-sided blade for WTO's members.
US Gov used to intervene into free market to stabilize situations and I think he will do it again. Bush has pressed Saudi to boost its oil production last week.
On June 17, 2008 CNBC wrote: Federal regulators said they will place stricter limits on foreign exchanges that trade U.S. oil as concerns continue to grow about the role of speculation in rising fuel prices.
So oil bubble burst is going to happen and now, we should exit from oil trading.
Please Note!
This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.
You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.
