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Re: Oil prices climb to $101.11 a barrel...

On Mar 27, 3:28 am, "Frithiof Andreas Jensen" [....]

Interest rates in EUR are higher than in USD. That's pretty fundamental. The > EUR will climb to at least the level where one gets the same returns - and > of course the EUR will continue higher as long as Bernanke is spamming the > world with US paper.

It isn't just Bernanke. The government is borrowing money to buy bombs to drop in Iraq. At the end of the day, the US is left with the debt and nothing to show for it. It would be a different matter if the US was buying production equipment, infrastructure or even education with the money. That would mean that there would be assets to cover the debt so the paper would have a little more backing.

[....]
> Eventually even people as stupid and inbred as the Chinese central bankers

I don't see the Chinese central bank as stupid. They have made the best investments they could given the situation. China is running a surplus.

Reply to
MooseFET
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You should put "investment" in quotes- a T-bill denominated in USD drops faster in value than the interest it returns. Best regards, Spehro Pefhany

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Reply to
Spehro Pefhany

Yes, but they were still making the best bets they thought they could. Making the US dependent on them, I'm sure they saw as a value beyond the value of the T-bills. China is likely to make moves counter to the US interest in africa etc and the US's ability to react is now reduced.

Reply to
MooseFET

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