Phil Flynn: A Trillion Reasons To Buy Oil May Not Be Enough

A trillion dollars in printed money and oil still can’t close higher! Ok, well maybe it hasn’t happened yet but the rumors of another trillion in quantities easing from the Fed as well as a multitude of other factors sent gold soaring to an alltime high and other commodities soaring.

What also seemed to help was this perception that with the reelection of Japan’s Prime Minister Naoto Kan's in the Democratic Party of Japan leadership, it could be less likely that Japan will intervene in the yen. WRONG!!! The yen seemed to taunt the prime minster hitting a 15 year high against the dollar and only then the Japanese finally said enough is enough and intervened in the yen for the first time in 6 years.

Reuters News quoted Finance Minister Yoshihiko Noda as saying, "Japan intervened in the currency market as the impact of the yen's rise on the economy could not be ignored and that Japan would continue to take action, but that it had been acting alone.” Reuters said that estimates on how much yen selling Japan had done in Asia varied widely.

Dealers cited talk of 300-500 billion yen ($3.6 billion-$6 billion) although some reports put it closer to 100 billion yen. Of course prior to the intervention and while gold and silver were flying high, oil sagged on the fact that.....Read the entire article.

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