Only idiot "analysts" can't explain rising crude oil prices
"Crude closes above $54 for first time this year"It is not hard to explain why oil prices are going up, and gold prices, and any other commodities' prices.
Oil prices hit a new high for the year Thursday and retail gasoline rose above $2 per gallon for the first time since November as investors wagered that there would be a new run on crude stocks.
Benchmark crude for May delivery rose $1.57 to settle at $54.34 a barrel on the New York Mercantile Exchange.
In London, Brent prices rose $1.71 to settle at $53.46 a barrel on the ICE Futures exchange.
Gas prices rose 2.3 cents a gallon overnight to a new national average of $2.009 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Pump prices are 10.9 cents higher than a month ago, but $1.252 lower than the same period last year.
Gas prices last hit $2 on Nov. 20.
Analysts have struggled to explain the recent surge in energy prices, especially as reports continue to pour out from the federal government showing that the U.S. economy is shrinking and its oil inventories are bloated with surplus crude.
The Federal Reserve is creating trillions of new dollars, and that's just this month! First $1.2 trillion under the guise of economic stability, and then another $1 trillion because the federal government has tapped out every source of existing money.
When there are roughly 8 trillion dollars floating around an economy, and the central bank will create over 2 trillion more dollars, who seriously thinks the value of existing dollars won't be reduced?
The ensuing inflation is inevitable, and the effect is simple on commodities markets: with the greater number of dollars floating around, buyers in general have more dollars to use when bidding, and sellers will know they can hold out for more dollars than otherwise.
So there you have it: no surprise, no fancy economic theories, no bullshit analyst explanations of crimps in supply lines versus EPA regulations. Blame it on the Fed: