How a Fed rate cut raises oil prices

Several "second order" effects.

http://money.cnn.com/2007/10/29/markets/fed_oil/index.htm?section=money_...

Alan

Jim Rogers: US economy "in a state worse than recession"

"The US economy is undoubtedly in recession," he said. "Many parts of industry are actually in a state worse than recession.

Mr Rogers' comments are followed slavishly by many members of the international investment communities, and his view that the US economy is in a worse state than that suggested by most economic commentators is likely to add to pessimism in some quarters about its health.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/24/bcnrog...

Fed rate cut will make matters worse.

Alan that's easy - each Fed rate cut decreases the dollar's value, makes the dollar "smaller" so it takes more of them to buy a barrel of oil.

So GWB should announce the 40.5 gallon Freedom (tm) barrel ?

To be followed by the 39 gallon Liberty (tm) Barrel.

...

Alan with a sip of sarconal

Sweet! We'll be at 115 MB/D in no time!

BTW, the other evening there was a talk show host talking about the rise of a dictator in the Weimar Republic -- someone who promised to "make the trains run on time."

How ironic that we in the USA will soon be clamoring for a leader who can "make the trains."