What is the outlook for oil and inflation?
*Barron's, by Jack Willoughby, April 27, 2009
“Peter Scholtz, who runs Scholtz & Co. in New York, sees the price of oil rising to $100 a barrel as a worldwide economic recovery spurs inflation and the Federal Reserve attempts in coming months to mop up all the liquidity it has pumped into the system. ‘They will be walking a tightrope,’ he says of the Fed. ‘If they don’t get it right, there is going to be a big inflationary problem. We are at a turning point, and I don’t think the Fed has the dexterity to handle it.’
Scholtz’s views are consistent, at least in part, with most other Big Money respondents. Nearly 80% think inflation, not deflation, poses the greater risk in the next three years, a potential consequence of massive government spending.”
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