The Epic American Credit and Bond Bubble Laboratory Message Board

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

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To: Jim Willie CB who wrote (26499)	2/15/2005 2:13:44 PM
From: michaelrunge	Read Replies (3) of 110194

Jim, If oil continues to surge higher, as I believe it will, in an attempt to cap oil prices in local currencies, foreigners will allow their currencies to appreciate versus the USD. The goal is to adjust relative prices and pay less for oil which is priced globally (for the most part) in USD. But the inverse of USD is gold. Weak USD = Strong Gold and vice versa. So as the pain from energy prices hits, I think that gold will continue to go up, regardless of deflationary forces. USD may be a decent unit of account and medium of exchange, but its days are past as a store of value. That's the new role for gold ("new" in terms of recent history anyway). IMO, good hedges against the coming storm are foreign currencies, gold, energy stocks, mining stocks, and any hard assets that are limited in supply relative to demand. -Mike furl.net

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