Propaganda Movement
The Dow has reached 6 year highs gaining 138 points to hit 11,577 and is less than a 150 points from hitting all time highs. The Dow was fueled by reports of job growth and in hopes of the Federal Reserve will stop jacking up the interest rates. I am sure these played into the big jump, but other factors like most the Asian markets were closed helped the increase. This may be short lived as the propaganda war will build more walls and fear since Iran is on the Euro kick again.
Iran released views that they want to trade oil on Euro though this is not the first time they have pushed for it. Iran has always wanted to release their own oil course, but as the great idea hits the deadline they always step back. We were expecting the IOB exchange to be up on March 20 of this year, but all we received is higher oil prices. Often times people think that trading oil in the Euro will destroy the USD, but that may not play out as the hype implies. In all reality you don’t need USD to trade oil and if you were to buy oil with the USD you have the option to convert it. Oil will be the same price no matter where you purchase it or how you purchase it. Many people will jump to the fear side and start doing things outside their right mind and I imagine the Federal Reserve may have to counteract this by raising interest. When it all comes down to it Iran, Chavez, and Bush are all fighting a propaganda war and bringing fear to so many and we have to understand that the ones who will suffer will be us. I am sure all three of those presidents will have their vacation homes with a jet full of fuel paid with tax dollars to take them away to Neverland as they try to come up with new ways to increase prices.
The metal commodities will continue to go up as this oil and currency will probably continue on for some time. Look for the metals to hit new highs. Copper is already at all time highs and gold is crawling up in that direction. Copper is like a sleeping giant who finally awoke. In 1988 copper $3,190 a ton and today it is $7,800 a ton and it will not stop just yet as the growth in Asia continue the demand of copper and several mines are still on strike. Also, along with copper, hedge funds to pension funds have been buying up aluminum, gold, oil, sugar, and many of the companies that produce these products.