Bernanke Weakening dollar - $179/barrel oil soon

[ErikJ]

an economist on CNBC this morning said that Bernanke is printing money fast to weaken the dollar so our export manufacturing picks up to help the economy and jobs.
He said that will drive commodities up higher and oil should go to $179 a barrel, which will add a lot to the price of gas. And with the 7 gas refineries under water along the Mississippi soon even higher.

[taught_me_patience]

1. The economy will crash way before that price

Gas prices are already starting to slow the economy.

[ErikJ]

3. This guy seemed upbeat

like Bernanke was a hero in the fight against China which he said would be having food prices skyrocket.
And the other guy was saying China was the place to invest now - or still.

[taught_me_patience]

4. The guy is probably invested in oil

He is correct in one point... you must invest in foreign equities... Research shows you'll have higher returns AND lower risk by investing at least 25% of your portfolio into foreign equities.

[ErikJ]

9. Oil investor-good point

I remember in 2008 Goldman Sacs said oil was going to $250 a barrel which drove up the price of oil to $140. Then when the stock market crashed oil prices did too along with everything else. GS was of course heavily invested in oil and I think they were desperate for another bubble after their housing bubble crashed hard.

[diabeticman]

2. If that happens can we say great depression

[Bonobo]

5. Pretty tough to leave a sinking ship when there are so many holes in it.

When a country falls, its citizens find themselves stuck there for this very reason.

Their currency is worth nothing so leaving would mean abandoning any capital they have saved.

Is it planned? Partially planned? Or just an artifact of the decline of a nation?

[jtuck004]

7. An artifact of the deline of the people of a nation, I think.

One that has forgotten where the only strength it ever had lies...

[OffWithTheirHeads]

6. What the fuck good is a $7.00 per hr. Job if a loaf of bread costs $10.00?

This is just more shock doctrine shit. Hyper inflate commodities while supressing wages to re impose fudalisim.

[hfojvt]

8. that economist is a liar or a moron

so far the weaker dollar is not raising the price of oil. Oil has gone up, but not because of the dollar.

[dipsydoodle]

10. There is a distinct relationship,

notwithstanding other issues which affect the price of oil, between the value of the US$ and the price of oil. That relationship cannot be broken without oil being traded in a form of currency other than petrodollars.

[JohnnyRingo]

11. Bernake throws supply/demand out the window?

Well there's some news for you.

If a pizza shop tells us that cheese has risen in price to the point that we'll have no option but to pay $30 per pie, we'll have no choice but to pay up. Or...we can buy less pizza. We can find an alternative.

The same goes with the price at the pump. If gasoline costs $6.00 per gallon, what are we going to do? Will we be forced to continue taking Sunday drives to the mall and buying SUVs? No. What we'll do is use less oil, whether by choice or not. The resulting lowered consumption will drive the price downward, regardless of the value of the Petrodollar. Saudi Princes will do everything they can to prevent the greenbacks they hold from losing worth. In the end, OPEC will keep oil prices at peak demand to maximize profit. That's what they do. That's all they do.