SAN FRANCISCO (MarketWatch) — Crude-oil futures rose Wednesday after the U.S. Federal Reserve signaled no change in its monetary policy, said the spike in inflation will be temporary and that the economic recovery is proceeding at a moderate pace.Between them, the Fed and the Treasury are responsible for a fair portion of the increase in price. You can look for scapegoats in New York if you like, but the truth is a big part of the problem in our government.
Prices earlier had turned lower after a government report showed a larger-than-expected increase in inventories and the U.S. dollar rose.
Here is a look at what our "fiscal policy" is doing to our purchasing power.
In a word, our purchasing power is being decimated.
It isn't rocket science. If your dollars are worth less and less, then you need more of them to buy a barrel of oil or an ounce of gold or a microwave from Korea.