An interest rate hike was (FINALLY) discussed by the fed on June 24/25th.  Remember when I mentioned Richard Fisher was the smartest guy in the room as seen originally on BccList.com here?

The minutes from that meeting were released publicly over the last few days…

http://afp.google.com/article/ALeqM5htN2868alrCkUVVQxMPv-vSBev0Q

Thus, oil prices dropped as a result of an interest rate hike simply being discussed within the JUNE fed meeting…

http://money.cnn.com/2008/07/17/markets/oil/index.htm

It’s not rocket science.  Raise the rates, less US dollars go into the market, and the cost of goods go down.  As seen here.

That said, per the incorrect reasonings discussed in the above CNN.com article, the recent drop in oil prices has little to do with potential diplomacy with Iran and/or a natural gas sell off and everything to do with the fed actually doing its job.

Shout-Out: Hey fed, no need to actually raise the rates though that would be even better in regards to curbing our growing inflation.  Simply keep talking PUBLICLY about the possibility of the interest rate raising.  Boners.

P.S. As seen here, oil (and gas) prices will still rise because of the “busy driving season” we’re entering but should eventually subside in late August/September assuming something “crazy” doesn’t happen. $3.50 a gallon of gas coming soon to a city near you.

Isn’t it “weird” the bush administration – actually, almost the entire gop including mccain – has decided to adopt some of Obama’s philosophies they previously called naive?

For example…

1) Agreeing that strategic strikes into Pakistan are needed if we had ACTUAL and RELIABLE intelligence (not like the Iraqi “intelligence”) in regards to bin laden’s whereabouts.

2) Actually talking to North Korea so that they chill the fck out on their nuclear program.

3) Focusing more on Afghanistan/Pakistan than Iraq since it turned out Iraq never posed a threat to our security.

4) Opening up a line of communication with Iran in hopes of solving an issue with – wait for it – diplomacy.

Obama has to feel like somebody is looking over his shoulder during a test and stealing all his answers. Dude, cover your exam leading up to the election or they’ll copy everything and claim your work/thoughts were their agenda the whole time.

Nonetheless, it’s fair to assume the administration/gop won’t be able to say we shouldn’t have invaded Iraq since we’re knee deep in that debacle.  Nor, will they be able to claim that the surge was a good idea since – while we may be “winning” the war now – our own economy is in “shambles” thanks to way too many billions of dollars being injected into the market…I mean, middle east.