Oil Prices Tumble to New Multi-Year Lows in Asia!
[youtube=https://www.youtube.com/watch?v=wNkUWSQ2IVs]
- Demand for US Treasuries (US debt) is fuelled by demand for dollars to buy oil ie. petrodollar. A higher oil price means greater demand for dollar which means greater demand for US debt. Now that oil price has collapse from US$100/barrel to US$60+/barrel, it implies that there will be less demand for dollars and US treasuries. Who is going to finance the US$1+ trillion of annual US debt? Do you really believe the FedRes when it says it has stopped QE? Coincidentally after the FedRes’ announcement of stopping QE, the BOJ announced massive QE! If you believe in coincidence!
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