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Re: O/T Not Political,but oil is going up again


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Posted by rrlund on January 11, 2010 at 08:13:22 from (216.46.211.44):

In Reply to: Re: O/T Not Political,but oil is going up again posted by E.B. Haymakin' on January 11, 2010 at 07:54:54:

You said not political,so I kept it that way. There's no manipulation about it. Investors investing YOUR money,whether it's a retirement fund,your insurance premiums so that you can be paid if you have a claim,what have you,HAVE to make money with money. Currently,because the government is keeping interest rates artificially low to finance spending money like a drunken sailor,commodities are the only place for the fund traders to put YOUR money. Right now,they are about 70% invested in oil,13% in other commodities and the rest floats wherever they can make a quick buck. Commodities don't have to go UP for investors to make money. They bid them up til the resistance gets too great,then they make money when it goes down too. This kind of conspiracy thing doesn't get you anywhere. Understanding it does.
As far as high interest rates go,yes,those who have money saved in a bank will benefit in that their money will make a little money,but the REAL problem is that hyper inflation goes along with high interest and the interest earned on those savings won't keep up with inflation. At least fund trading of commodities to make money with money doesn't have the same effect. At least not if they don't go crazy again and bid oil to $150 and corn to $8. In other words,as long as they make money when it goes down. Currently there are more traders invested in funds that make money when the market goes down,than there are who make money when it goes up.


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