2 June 2008
The New Gold
Posted by Joy Bischoff under: World Economy .
As we have discussed here, oil has taken the place of gold as backing for the dollar. We can only hope that OPEC will not move to the Euro but will continue to peg to the dollar.
How the Masters of the Universe are murdering the middle class by gambling on black gold
By Dan Atkinson
The Masters of the Universe, those big-name traders of the City and Wall Street, have a brand new toy to play with: oil.
Last month, waves of speculation pushed the price of ‘black gold’ to all-time highs.
Although world supply and demand are thought to be roughly in balance, the bright young things working for the investment banks and hedge funds have bid up the cost of a barrel of crude oil through the stratosphere.
Despite some easing last week, the price remains at record levels.
We will all have to pay, and not just at the filling station. Expensive energy means slower economic growth, fewer jobs and less tax revenue, hence less money to spend on health, education and public safety.
Social tranquillity and the quality of life could take a big hit. Thanks, guys.
3 Comments so far...
Benjamin Says:
2 June 2008 at 9:58 am.
I can’t find it but somewhere this weekend I read an article that gave some hope that OPEC might not abandon the dollar after all. I hope it is true. I know things don’t look stable or promising because of the national debt and other problems but if we can avoid a flight from the dollar then maybe that will give us time to come up with solutions to the other problems like the housing situation.
Joy Bischoff Says:
2 June 2008 at 12:27 pm.
It makes me nuts to see our economy so much in the hands of Muslims who hate the west. This is a system that has to change or we will come to grief. The obvious first step is to start drilling but we keep singing that song and no one is accompanying us.
Nalvy Says:
3 June 2008 at 1:40 pm.
Joy you speak much truth and very often!!!
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