Why should the fed invest in banks when we could compete more easily if renewable energy cost so much less than petroleum? As a side industry we could sell renewable energy technologies to India, China and the Middle East.If the dollar is weak due to oil prices (cost of manufacture/transport) wouldn't alt energy boost the economy?
Oil麓s price is not the reason for US dollar weakness,the reason is that USA needs to devaluate its currency to remain competitive, its also a way to devaluate the real value of US wages.Another reason is to bail out US banks ( at the verge of bankruptcy).The Fed is just going to write off bad debts from banks麓 books.
About a new energy that could replace Oil, I dont foresee any possibility in the near future.Anyway , as investors have many doubts about the future of world economy, I dont think they are going to invest massively on biofuels.What if Oil麓s price is just another bubble?
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