As predicted, the feds’ easy money policies are turning into hard times for the middle and lower classes. Oil prices have gone up with the Fed’s balance sheet. For every dollar the Fed added, the price of oil ticked up too.
Now, the Fed has three times the monetary base it had before the crisis. And oil is three times as expensive.
Of course, you’d be hard-pressed to prove a direct cause and effect linkage. We wouldn’t even try.
But here’s something else. Where’s the price of gold? It hit a new record yesterday. $1,458. That’s up about 3 times too? What a coincidence!
Yeah, just a coincidence. No real connection between the feds pumping up the supply of money and prices going up….
Yeah…just a coincidence.