Is the ECB Hijacking Fed policy?
Crude oil prices have multiplied seven-fold since 2001, and surged 40% since January, to now stand above $135 a barrel. Yet the hyper-Inflationists at the Bernanke Fed and US Treasury, – the “Plunge Protection Team,” didn’t recognize that their cheap dollar policy was backfiring on the US economy and stock market, until crude oil prices jumped $16 per barrel in two-days, on June 5-6th. The “crude oil vigilantes” are energized on heavy dosages of steroids, flexing their muscles, and ready to jack-up oil prices, whenever the Bernanke Fed shows a willingness to devalue the US dollar. Recognizing that the devaluation game had run its course, Fed chief Bernanke did a 180-degree turn on June 3rd and vowed to defend the dollar, as Mr Volcker had advised nearly 2-months earlier. “We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations,” Bernanke told the International Monetary Conference in Barcelona, Spain. “The Fed’s commitment to p
