RE:RE:RE:RE:RE:It wouldn't put "If the Fed did short, they will have to unwind that position so oil could rebound big, particularly if oil inventories continue to decline. As for bias towards one particular US administration, I think that is quite clear already in just about every arena. " Maybe...I am pretty sure that is what gold investors are counting on as they try to unwind their possible position in gold and cut rates simultaneously.
Then again, the Fed has, at their disposal, tools, that almost no other world banks seem to have. Like their ability to create the appearance of more cash for banks without actually printing money and then drying up that supply when it suits their needs. It is financial wizardry and trickery that would probably be unmasked as a "ponzi" like scheme if it were attempted by any other financial institution and I would not put it past their deft ability to unwind their gold position and oil position simultaneously and make it appear practically seamless while making one, more or less, pay for the other.
I personally expect to gold rise sharply and oil stay comparatively flat while they do this.
GLTY and all
VeritasVern wrote: Could be the Fed, afterall they are the creators of cash and have an unlimited supply to control the movement of anything they want. They easily could get away with it - as a private entity as they are exempt from audit. Retired senator Ron Paul, wanted to audit the Fed, as you can imagine that went nowhere fast.
This week both the API and EIA published bullish reports but imediately after the EIA report was released the market sold off 2%. Really now, who in their right mind would short oil after two bullish reports from two critical organizations that the market uses for price discovery? If you recall the exact thing happend when OPEC added to they production declines. The key point is that it wouldn't be hedge funds as it makes zero scense timing wise and poses clear risks.
If the Fed did short, they will have to unwind that position so oil could rebound big, particularly if oil inventories continue to decline. As for bias towards one particular US administration, I think that is quite clear already in just about every arena.