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Friday, May 8, 2015

Oil Prices and End of Cheap Money

This piece in Oil Price explains how the end of the Fed's cheap money policy--"quantitative easing"--led to the drop in world oil prices.   He provides a useful chart too:  The-Simple-Reason-For-The-Oil-Price-Drop

I don't know why more analysts haven't recognized this:  the surplus in production only contributed to the price drop in part, but certainly not a 60 percent drop!

For some reason, the press is reluctant to explain the Fed's impact on world events.

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