While Federal Reserve Prints Money – Obama Spends and blames Big Oil – Some Things Never Change
Traders and investors have had enough of Obama and Fed Reserve Chairman and their delusional answers for Americas demise. This week every time Obama or Bernanke spoke the US dollar got smacked down. The result is commodity prices soared.
If you want to look for culprits look no further then these two and the administrations they head up. The losers are the lower and middle classes in America.
Commodity markets surged reaching new yearly and all time highs this week after the historic Fed press conference following more statements from Obama blaming oil speculators and Geithner saying we are fine with high prices. The misstep with main street and middle America from these cretins is astonishing. The real specter of $4 gasoline is causing consumer worries and getting no response from Obama or Bernanke.
We finished this week with gold above $1560 for the first time ever and silver nearing $50 for the first time since 1980. There is simply no trust in the US dollar and Us political situation.
The US consumer really has been dealt the sharp end of the stock here as Crude oil finished near levels not seen since 2008 closing around $114, up roughly 7% in April. Though don’t worry if you still ha ve a few bucks in retirement as the Russell 2000 and Dow Jones Transports Index reached new all time highs as they traded above 2007 levels. For the week the DJIA gained 2.4%, the NASDAQ gained 1.9% and the S&P500 rose 2%.
Just a pity that the majority of Americans have minimal money in the markets because of the crash and need to access savings through unemployment and inflation.
US Treasury markets also remain bid up with Bernanke showing no concern with inflation which saw bond yields lower on the week. How about the US recovery? Well we saw disappointing Q1 GDP and manufacturing data.
In the real world for most of us devoid of Republican and Democrat politicians and a privately owned Fed we see service stations across the nation nearing or above $4.00 gasoline at a time when the economy is struggling at best. Recall that the last time gasoline prices hit $4 a gallon, the United States was in the midst of recession. This time we haven’t got out of one so expect discretionary spending to be slashed to compensate.
The governemnt sits idly buy as the new Financial Reform Bill showed. The resuklt was more power to the Fed, meaning less power to you the American citizen and consumer.
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