RE:RE:RE:RE:Oil prices are up, US $ is up, hummmWe buy/sell commodities based on the US dollar not gold. Between 2006 and 2020 gold fluctuated between $550 - $1850 but inflation was contained at 2%. So gold prices has little effect on inflation, glad we agree on those ponts.
My observation was that the US$/oil relationship has changed in the last two years which is a big departure from recent - historical relationships.
Any rationale to explain that departure is free for anyone to decide particularly if its good/bad. That said if you create the conditions that are inflationary and then have to step in to influence markets then is that what we want.
As for the FED, things have changed exceptionally since they were first created. In past they were limited by expanding the money supply because it had to be backed by central bank gold reserves. They then fractionated that relationship through the years until in 1970's when they completely delinked the gold standard from the dollar. Meaning they are now able to create as much money as they need. But they also hve really special powers as they can also buy the issued bonds with the money created to limit the yields, so controling that as well. At what point does FED/Gov intervention become excessive?
Some think that is banana republic finances others are ok with it most are not even aware. You think it's ok, I'm fine with your opinion because everyone has one.