Comments on: The Wrong Kind of Bubbles

By: gert de jager. South Africa

gert de jager. South Africa — Tue, 03 Jun 2008 18:45:57 +0000

here in South Arica we are also suffering because of all the easy money the last 7 years, but our the Reserve Bank is intending in lifting the interest rates, currently at 15%, even more to "fight inflation". Instead they are also "killing" the consumer who has house and car debt. It is interesting to note that one of our radio stations advertises to be quick to book for a conference where dr. Greenspan will be the main speaker....a world renonwed central banker.....do not miss this opportunity, they say. I would rather listen/read more about what Bill Bonner has to say.

By: christina

christina — Mon, 02 Jun 2008 14:29:29 +0000

I reckon the feds actions can be nicely described as a bubble in stupidity

By: Ivo Jager

Ivo Jager — Mon, 02 Jun 2008 05:56:31 +0000

Aren't high oil prices exactly what the US want though? The value of the USD is dwindling as the printing press keeps rolling, the national debt keeps mounting and the world starts losing its faith in the greenback.

However, since oil is paid in USD, foreign governments need huge reserves of the greenback to keep paying for their (increasing!) oil imports.

Now, if you raise the price of oil, wouldn't you need more of those greenbacks to pay for the same amount of oil, thereby making the dollar more scarce and driving up the price of the dollar?

I'd say it's awefully convenient for the US that the price of oil has gone up, wouldn't you agree?