OIL $90
October 19th, 2007Via: Bloomberg:
Crude oil breached $90 a barrel in New York for the first time as the dollar traded near a record low against the euro, enhancing the appeal of commodities as an investment.
Investors purchased oil on speculation the Federal Reserve will cut borrowing costs to bolster the U.S. economy when policy makers meet on Oct. 31. Oil futures set records the past four days on concern supplies from northern Iraq may be disrupted if Turkey takes military action against Kurdish rebels.
Well, I guess we’re now pretty close to if not right at the inflation-adjusted all-time high of the late 70’s/ early 80’s. I can’t help but wonder, though, why the increased price of unrefined petroleum isn’t reflected in the price of gasoline/ petrol.
Here’s something interesting:
“The Fed has been creating money at a phenomenal clip all year with the M-3 (that government no longer reports, but economist John Williams does on Shadowstats.com) growing at a 14-percent rate, a 34-year high.
But since the meltdown of the sub-prime mortgage market, the Fed has really been shaking its moneymaker. In a Sept. 6 alert to his subscribers, Williams noted, ‘M2 now has risen by $111.1 billion for the last two weeks, rising at an annualized fortnight growth rate of 48.2 percent.'”
From this link:
http://right-mind.us/blogs/blog_0/archive/2007/10/18/55341.aspx