RE:RE:A glimmer of hope Using interest rates to kill demand is like cutting off your leg because you've got a sore foot. Work on fixing the foot and leave the leg alone is a more intelligent and precise way of handling the problem. Using the Fed to solve the oil problem is simply too blunt an instrument and will not work in the end but will have other dire consequences.
I think even Biden and the Democrats, if they win a majority will come to that
realization and hopefully sooner than later. If not then I fear the consequences
but no party wants to see the economy implode and house foreclosures on a
mass scale, bankruptcies and loan defaults everwhere to have oil at lower level
than what Opec desires.
Opec cut because they see the Feds intent and are bracing themselves for more
int rate increases. Its a reasonable move on their part. At the end of the day, I
think its really more about politics and Biden looking "good" for the election than
anything else. When you have high levels of employment and more job vacancies
than people filling them, you should have enough slack in the economy to live
with higher oil prices until supply can catch up.
What I think is one thing but what those who are in control think is another and
its best to err on the side of caution and protect ones assets. Its going to be an interesting time over the next few months and certainly anything but boring.