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Dollar is The New Gold

The waiting is over to choose between the two, The Devil above and The Deep Blue Sea below. If Rate of Inflation and the Unemployment figures are the criteria .then: A raise in the rate of interest would have stirred trouble, and to do nothing, is just delaying things.

That is how economists and the media explained the situation. But there are many other things

The Fed are saying "We are not printing dollars, we are only Creating Money" to stimulate the economy. True, it is not "six", it is half a dozen. As long as the money creation does not, increase the rate of inflation, the Fed will continue to create more dollars .The inflation rate will stay low, because the large drop in the price of Oil reduced(directly and indirectly) the prices of the goods in the “Inflation Index Basket”, which is used to measure inflation. Secondly, the dollar created, is not "chasing American goods and services" to cause inflation. The new dollar is used to buy international goods and services. It is used to buy, Gold, Euro.... is absorbed by the ever increasing international demand for dollars, and kept by others as Bank Reserves, or idle balances.

During market volatility, and low rate of interest, demand to hold dollar is much stronger than holding bonds. America may not be the largest Oil or Gold producer in the world, but certainly it is the largest dollar producer! This is clear from the graphs which show the dollar index is all time high, stable and less volatile than gold, Euro, and any other assets. This may not be the case on daily basis, but since 2009, this is the dollar index, compared to other indices. 'In the old days ,Gold was "Safe Havens" , today the new gold is the " Dollar" , and it's production is much cheaper and limited by only "When the market says " Enough", and when the inflation and unemployment shoots up .

If you read our articles the conclusion is : Increasing the rate of interest was not and still is not an option, Not even in the next meeting.,and if a change is made it will be "insignificant and scanty"

The fed is taking its own index while the speculators are mainly concerned with " Dollar Index on futures market" .The Dollar index Is showing a downward trend ,. While DTWEXB of the Fed is going the other way.and it is now more than 120% according to the graph (no.13) it reached (120.5717 %) on Sept ,4,2015 ( Data From the Fed index). This has been the case since the monetary crash of 2008-2009. .with the introduction of the QE . see graph 14 on the right

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Yearly (Gp14)

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