I'm talking about the spike in oil recently... Who'd of guessed? A diabolical plan to increase the cost of oil while a Bush is in the whitehouse...?

Oil is a hedge against inflation. Oil is traded in dollars so when the dollar drops oil becomes a more attractive investment for those trading in foreign currency.

The FED cutting its key rate increases the likelyhood that the value of the dollar will drop. When the value of the dollar drops investors world wide rally around oil and the cost per barrel soars.

The FED Funds rate cuts did not help the consumer, they did not help the housing market and they certainly are not helping the financial markets but oil is doing just fine.

I've seen a lot of speculation on this topic as I wrote about it on the ActiveRain network entitled:

Deliberate plan by the Bush Administration FED or just coincidence?


I am adding this here as well because I would like to see what some of the readers of this blog think. Do you think that all of this is just coinidental or is it intentional?

Another topic of interest to me that is along the same lines as this is that 150 Billion dollars that the pentagon is missing... The original "Stimulus Package" that was presented before the pork got loaded in was 150 Billion dollars...

I've never been a conspiracy theorist but some of the things going on within the current White House is obviously not above board which leads me to mistrust the entire administration. I hope to hear some opinions on this. Thanks for reading!