OIL and US$

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jurek

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OIL and US$

posted on Mar 18, 2009 09:53PM

Oil recovered Wednesday afternoon on the news that Federal Reserve will start to buy government debt (long term bonds). Oil and gold continue to move higher in after hours trading. WTI is $1 up (above $49) and gold jump $40.

It is all related to dramatic dive in US$ (see the chart below). More money has to be printed ($400billions) and the only beneficiary of this move maybe the Chinese who can finally unload some US bonds directly to the Fed.