Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

$6 Gas? Could Happen if Dollar Keeps Getting Weaker

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
 
dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-25-11 03:49 AM
Original message
$6 Gas? Could Happen if Dollar Keeps Getting Weaker
A dollar plumbing three-year lows is hitting Americans squarely in the gas tank, and one economist thinks it could drive prices as high as $6 a gallon or more by summertime under the right conditions.

With the greenback coming under increased pressure from Federal Reserve policies and investor appetite for more risk, there seems little direction but up for commodity prices, in particular energy and metals.

---

Michael Pento, senior economist at Euro Pacific Capital in New York, says there is an almost perfect negative correlation between the falling dollar and oil pricesminus-0.9 to be exact.

"When you have negative correlations that strong, it's not hard to understand that the reason why we're having this price spike in commodities is primarily because of the weaker currency and not because of shortages of oil or international tensions or global growth," Pento says.

http://www.cnbc.com/id/42683030/
Printer Friendly | Permalink |  | Top
aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-25-11 04:35 AM
Response to Original message
1. OR we could tax the rich. And regulate vital commodities.
In saner if less civilized societies, profiteers and hoarders in times of scarcity were hanged, or shot, or dismembered, or in other ways treated with the loathing and disrespect they deserve.

Or perhaps I'm thinking of sci fi.
Printer Friendly | Permalink |  | Top
 
masmdu Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-25-11 05:34 AM
Response to Original message
2. Technical analysis indicates $ to strengthen from here...
A large A,B,C flat (A to Jan 09, B to June 10, C to Now)has just completed with an ending diagonal fifth wave to complete the C.

The dollar should immediately begin to become stronger. First resistance at 79 (beginning of ending diagonal) then on to 89 and besting of June 2010 highs.
Printer Friendly | Permalink |  | Top
 
dipsydoodle Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-25-11 06:37 AM
Response to Reply #2
5. Only if the interest rate is increased
and then the ECB doesn't increase their rate further.
Printer Friendly | Permalink |  | Top
 
masmdu Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-25-11 07:51 AM
Response to Reply #5
7. Perhaps. But that is what appeals to me about technical analysis...
This is an inflection point. Either the pattern I discribed plays out or it doesn't. It matters not to me which way or the reasons why. Eitehr way it will inform one of the direction of the next move.

Determine the likely direction and enter with stops.
Printer Friendly | Permalink |  | Top
 
kentuck Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-25-11 06:02 AM
Response to Original message
3. What a great way to get rid of this deficit and debt!
If only our elected politicians had the courage and foresight to tax it.
Printer Friendly | Permalink |  | Top
 
Dj13Francis Donating Member (343 posts) Send PM | Profile | Ignore Mon Apr-25-11 06:30 AM
Response to Original message
4. uh, yeah.
Then it'll be seven. Then soon after that, eight. Then nine, followed by ten in quick succession. Then, well, I think you see where I'm going here...

davidjamesfrancis.com
Printer Friendly | Permalink |  | Top
 
WinkyDink Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-25-11 06:42 AM
Response to Reply #4
6. No. Where? One word: "Argentina." Yeah, mega-inflation couldn't happen there, either.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Fri Jul 25th 2014, 01:43 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC