Oil has broken 75 and FX insurance costs have raised the ten year to 1.45, the dollar should still go down. Result? High costs for the consumer and a slow down of private consumption.
Someone at the Fed is quite clueless to think they control the inflation rate or lending. They are beholding to petrobanks and Japanese insurance banks.
Goldman Raises Year-End Oil Price Target To $90
If Brent goes to 90, the WTI from Texas does to. This would be shut down for everyone here, except Texas. Something is going to collide, likely the petrobanks, FX insurance and the Fed taper; all going to the same spot at the same time. Add in the debt limit and we got problems.
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