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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: energyplay who wrote (7519)8/28/2004 12:32:19 PM
From: Seeker of Truth  Read Replies (2) of 11633
 
Hi EP, here's a possible scenario. The cost to Japan and China of importing oil will steadily increase and thereby soak up dollars which would have otherwise been reinvested in US bonds. As a result US interest rates are forced to rise because of the weakening global demand for US government securities. For China and India it is certainly true that their expenditures on oil will increase even if the oil price were to be constant for several years. Look at China's balance of payments. Overall the surplus is now minuscule. Sales to the US are almost balanced by purchases from elsewhere, mainly raw materials, such as fossil fuel.
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