Posted on 02/25/2011 11:30:01 AM PST by FromLori
OK, it has a small effect. Maybe so.
Do you think the withdrawal of that potential supply caused the price of oil to go down a little? Or to go up a little?
“Did you see the other new Fed talking points? lol Recovery...”
Indeed. It’s really so simple. A $1.4 trillion federal deficit will eventually blow things up. Whether it blows things up as hyperinflation or as deflation depends on whether the fed monetizes the debt or makes Zero borrow the money from private lenders. The gorilla in the room is the deficit. One way or the other, the gorilla is going to tear the room up.
Whoever is the next president has the worst gig of all time because it looks like the Fed is going to let the deficit continue with no interest rate checks and to kick this can down the road until sometime after 2012.
Well the issue of monetization is settled even the Dallas Fed talks about it...
Federal Reserve Balance Sheet Update: Excess Reserves Surge, Fed Owns 37% More Treasurys Than China
http://www.dallasfed.org/news/speeches/fisher/2011/fs110112.cfm
They were too scared and needed to be politically correct. We needed to bring freedom to the Iraqi people and democracy to the Middle East and eventually everyone would love us. Drill on our own soil and build Nuke facilities everywhere. Why are we paying $3+ for gas and $500 month to heat and cool our homes?
Keep waiting on those “green jobs” too... What a scam.
“Do you think the withdrawal of that potential supply caused the price of oil to go down a little? Or to go up a little?”
Maybe a little. The big effect of domestic production is on US employment, US balance of trade, and how much money we have to borrow from China.
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