Can China come to the rescue of Europe? The markets seem to be getting a boost from a China pledge to buy euro bailout bonds! It's only right because their currency manipulation and theft of intellectual property has help exasperate the crisis.
At the same time the Bank of England is saying that consumer price inflation rate is likely to fall sharply in coming months. In other words, they are worried about deflation, which opens up the door for more money printing! That is bullish for the market!
The AP is reporting that Iranian state TV says Tehran has cut oil exports to six European countries in response to European Union sanctions, which include a boycott of new oil contracts with Iran. No details were immediately made available on the Press TV report Wednesday, including which six nations were affected by the decision. The move comes days after Iran's oil minister, Rostam Qassemi, said Tehran could cut off oil exports to "hostile" European nations as tensions rise over the Islamic Republic's nuclear program. Iran argues that the EU oil embargo will not cripple its economy, claiming that the country already has identified new customers. European sales account for about 18 percent of Iran's total crude exports."
So please don't be a pathetic whiner that will blame speculators of the run up in price. They are just accurately reflecting the global mess that we are in. As global governments try to print their way to prosperity and try to add even more regulations, it will be all of us that pay the 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.