Another day, another dollar, but now it is worth less. QE2 anger around the world continues to grow leading one to wonder if someone in the world might want to say that the United States is a currency manipulator. How will the Chinese get even with us for our dollar printing ways? Well the easy answer is to just buy more commodities. The hot money is pouring in as the dollar gets wacked and commodities take off again.
Hedge funds bullish positions in oil hit a 4 year high as they have no other choice but to react to the bullish actions of the Fed. No one should blame speculators for driving up prices because the Fed gave the hedge funds no choice. The Chinese have no choice either as the Fed action may force them into another commodity buying binge. The Chinese are already stockpiling oil and panic buying in cotton and other commodities may start to take the place of buying U.S. debt. Why lose money on a deckling dollar when you can make money holding gold, silver or corn! There is also some concern on the Brent side that North Sea crude production could fall.
