Reply #5: The Dollar Has Stopped Sinking

[KharmaTrain]

Here's the problem with this theory...with so many cheap dollars, what do you expect the Saudis will do? The same as they have in the past...spend it. And where? And with what? The money comes back, it's just that it goes from your pocket into theirs and then back to a defense contractor or high class jeweler or buying up cheap property (I see that coming)...they're getting a lot of "bang" for their buck right now and they sure have a lot of 'em. It's kinda the same shell game that's played when people discuss foreign aid...much of that money never even leaves our shores but goes directly to defense contractors or some other GOOP pet.

It's been said, but rarely in places that many hear them, that the price run-up is on speculation...the price of oil is based on a futures delivery and the game is to drive up the price...like any other commodity as your contract nears expiration...thus if you bought the futures on a $100 barrel of oil 60 days ago, you're sitting with a nice profit now. 99% of us can't play this game, but the big boys can and do.

As mom always said...when someone loses money, someone else is making it. The Saudis see no need to increase output because there isn't an immediate need...the price run-up is the latest "bubble" for the rich...note how the real run-up began when the housing mess began. Just follow the money...