"Oh, by the way .... "

This is just idle chatter, but something that I can't get out of my mind. When that happens, what works best for me is to post it and then move on.

Was it last Tuesday (January 4, 2011) when Mr Bernanke was testifying before Congress (regular bimonthly hearing)? Someone asked him whether it was the Fed's policies that was resulting in price of oil trending toward $100.

Besides alerting me to the observation that Washington was getting phone calls, e-mail and letters from their constituents concerned about rising price of oil, it alerted me to reflect on Mr Bernanke's answer.

He said the rising price of oil was not due to the Fed's policies but rather due to emerging markets. Wow, I wasn't the only one who caught that. Talking heads on CNBC immediately opined that Mr Bernanke was being disingenuous. In fact, they said, the rising price of all commodities, including gold and oil was directly related to the Fed's policies.

But let's assume Mr Bernanke was truthful ... just not offering the whole truth. If so, then the rising price of oil is due to two reasons (one from Mr Bernanke, and one from CNBC  talking heads):  a) emerging markets; and, b) the Fed's policies that have weakened the dollar.

But there's a third reason, and I think it's even bigger than "emerging markets." I think it's the global recovery. Japan recently reported record amounts of imported oil. Japan's oil imports rose 11 percent in November. And Japan ain't an emerging market. 

And, of course, the administration's policies of slow-rolling leases on-shore and off-shore in the US, and now the shutdown of the Alaskan pipeline .... well ... the price oil is rising due to "emerging markets," according to Mr Bernanke, but he could have read off a laundry list of reasons.