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Thursday, August 23, 2012

Oil tops $116 on Fed stimulus hopes

Further stimulus may weaken the dollar, which in turn will lift commodities priced in dollars, while any boost to the U.S. economy from the stimulus may also drive up oil demand.

Quantitative easing amounts to printing more money to increase the money supply which is the definition of inflation. Inflation leads to higher prices and amounts to a theft of savings. How do they think the economy will respond to that?

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