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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (20114)10/17/2004 7:47:56 PM
From: Michael Collings  Read Replies (1) of 110194
 
mishedlo:

If this economy starts slowing down, you can be sure that neither China nor Japan will continue to dump money into our treasuries. Vendor financing only holds up if you are buying goods. You can also be sure that the world will not accept the same number of dollars for oil. Peak production is upon us now with maximum capacity of 31 billion barrels annually in world supplies. Demand is expected to be 84 million barrels per day next year which will equate to the 31 billion with no allowances for disruptions. Even with a slowdown, most countries will continue to build reserves in oil to protect against a future shock. The issue is whether or not oil producing countries would continue to take depreciating dollars for their scarce resource. Most likely they will require a premium. Get your low mileage cars today! I think one of the best investments today are the Canadian oil trusts like Pengrowth paying 13% or Enerplus paying around 10%.
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