This wacko shift seems like it will end up into a real-life depiction of 'Jack and the Beanstalk' .. climbing up, up and up and then down, down and down ... but without the hen that lays the golden eggs.
Nothing has significantly changed in the U.S. economy yet. It's still sluggish. Consumer spending is weak. Jobs are scarce. Official unemployment rate is 6.2%. The real figure is twice as high at 12.6%. Prime rate is still stuck near zero and the Federal Reserve won't even talk of raising it by a tiny quarter percentage point. But the U.S. dollar has suddenly been taking giant steps and soaring at a breakneck speed.
Moreover, slumping oil prices are also being utilized as a tool for political hype. No one ever forgets that! Quoting a few lines of a stupid and gossipy story posted today at Yahoo News .. "Hezbollah, the Shiite militant group, is facing a new enemy: financial austerity. A slump in global oil prices and nuclear-tied sanctions are squeezing the group’s patron Iran, which is already funneling billions of dollars to the Syrian regime. As Iran tightens its belt, Hezbollah has had to impose salary cuts on personnel, defer payments to suppliers and reduce monthly stipends to its political allies in Lebanon, according to a wide range of political and diplomatic sources in Beirut." While tattle-tale myths like these carried by the U.S. spy network prowling in Lebanon are peppered across mainstream news sources, the vital issues that need to be told are conveniently evaded.
There is an eerie silence on the long term impact of oil deflation on the global economy which is already frail and shrinking. Oil prices are expected to continue falling through 2015, unleashing depression in Europe, leaving countries like Japan and China in a quandary, and worst of all having a devastating impact on assets linked to oil revenues .. and consequently a collective fiasco in the corporate world and decline of bank profits. How do you think all that would eventually affect the common masses who are miserable enough already? As per some weird gerrymandering, low oil prices have always helped the US dollar to strengthen against all other currencies. Is this reckless conspiracy of global oil deflation worthwhile only to protect the US dollar?