The Federal Reserve and Bernanke and Company decided to leave rates unchanged hoping for the ongoing economic slowdown to cause inflationary pressure to moderate. They could have ordered checks to stop inflation now but have decided against a rate increase.

Unfortunately, the inflation is caused by oil price pressure which are tied into every aspect of our economy and our falling dollar doesn’t help. When our dollar value drops internationally, the oil it needs to buy causes price increases.

It has nothing to do with speculators and traders. It’s all about supply and demand. There is more oil demand than supply.

We need energy alternatives and we need them fast. If Europe raises rates it will push the dollar even lower and you’ll see even higher fuel prices.