Wake up! It is time to grasp the truly historic macroeconomic events that are playing out before our very eyes and realize that printing money to pay off debt has a real cost to everyone in this country. It impacts the cost of oil. It shakes confidence in the purchasing power of the dollar. It shakes confidence to the global economic infrastructure and makes commodities inherently more valuable.
I am tired of the growing attacks on the free markets and freedoms in general as people want to live in a world of denial. Don’t you get it? The U.S. is in big trouble if they don’t get their budget under control. Oil is more expensive because the U.S. has been printing money to prop up its incredible amount of debt. I am tired of Washington blaming Wall Street or capitalism or speculators for the global economic problem when the problem is mainly creating in Washington by those same politicians. You can’t keep spending money you don’t have. You can’t keep printing money to pay off your gluttonous spending. You can’t keep strangling economic growth by taxing the heck out of the most productive parts out of our economy and continue to expect that we provide the type of growth it will take to grow the economy out of its current fiscal situation. Wake up!
I am tired of analysts with such a narrow view of fundamentals who can’t acknowledge that the market is right and they are wrong. The Market is acknowledging the impact of the U.S. debt situation as well as the Geo-political threat to oil which is at the highest level since the Arab oil embargo. Ever since I have been in the futures business, I have heard people blame speculators for the price increases in oil, yet looking back over the last 25 years you can see a solid fundamental reason for the price moves. In fact, I have been telling people since the year 2000 that explosive economic growth in China and OPEC getting its act together not speculation was driving price
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at firstname.lastname@example.org.