Tuesday, October 12, 2010
Phil Flynn: QE2...Is It A Bounce Or Bust?
Farmers are getting about 62% more for hogs than a year ago and 32% more for milk! That means for most Americans to feed their families costs are going up. The cost of filling their gas tank is going up as well. Gas prices have surged at the retail level almost 20 cents a gallon since the Federal Reserve said it wants inflation. Oh sure, the French refinery strike and the improved export picture for gasoline is part of the story, but in reality the spike in gas and the timing of the spike can be traced back directly to your friends at the Fed.
With friends like that you need policy makers. Since the Fed meeting we have seen the price of oil add over 11 dollars a barrel from peak to valley. RBOB gasoline futures went up from a low of 192 a gallon to as high as $2.20 a gallon and Heating oil hit as low as $2.11.14 a gallon to a high of $233.41 a gallon. Are you feeling the Fed's love now?......Read the entire article.
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