Link dump.
Jul. 4th, 2008 05:42 amWell, doesn't this make sense. http://www.wakeupfromyourslumber.com/node/4476 "The fact is, these insane spikes in the price of oil have far less to do with supply and demand of OIL than they have to do with the supply and demand of DOLLARS. With the dollar plummeting down to the pits of hell, people are dumping it left and right. All that money has to go somewhere - after all, MONEY WAS NOT MADE TO STORE UNDER YOUR COUCH! Since the real estate market is officially DEAD and BURIED (because people can defer buying a house), they choose to "invest" their "money" in the types of commodities that they know that people CANNOT LIVE WITHOUT - thus, oil (and food) is perfect (last I checked a gallon of milk was $4). |
I'm sort of suspicious of simple answers to complex problems, but I think the speculators-theory is even more vague/simple.
If you have ten minutes or more, watch the video on the sidebar. They try to explain the system, and although they lost me here and there, I think I learned something.