Oil hit $89 bucks intraday yesterday.
“Many news reports attribute the recent rising prices for oil and gold to tensions in the Middle East,” writes our oilman Byron King. “Specifically, Turkey is threatening to invade northern Iraq and chase down some border-crossing Kurdish guerillas that have been launching attacks on Turkish territory.
“This may, in fact, be the immediate reason why the prices for oil and gold are rising. But this reason is far too facile, if not convenient. The root cause is the declining value of the dollar. That’s a far more profound reason than a border clash between two countries in the Middle East.
“The rising prices for oil and gold are reflective, generally, of the world’s desire to accumulate scarce and precious goods in the here and now, as opposed to holding depreciating dollars for some unknown future.
“Many news reports attribute the recent rising prices for oil and gold to tensions in the Middle East,” writes our oilman Byron King. “Specifically, Turkey is threatening to invade northern Iraq and chase down some border-crossing Kurdish guerillas that have been launching attacks on Turkish territory.
“This may, in fact, be the immediate reason why the prices for oil and gold are rising. But this reason is far too facile, if not convenient. The root cause is the declining value of the dollar. That’s a far more profound reason than a border clash between two countries in the Middle East.
“The rising prices for oil and gold are reflective, generally, of the world’s desire to accumulate scarce and precious goods in the here and now, as opposed to holding depreciating dollars for some unknown future.
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