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

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To: mishedlo who wrote (67824)8/10/2006 10:17:05 AM
From: SouthFloridaGuy  Read Replies (1) of 110194
 
Right. So the fact that oil has gone up 1000% in Zimbabawe currency had nothing to do with inflation.

Oil is a global commodity that just happens to be priced in dollars. In Brazilian Real terms, oil has barely budged in the last two years because the Brazilians are maintaining 10% real-rates and are virtually external debt free.

Right now oil is all about the debasement of currency and gold, by virtue of its historic ratio corrleation with oil, is the same.

When interest rates rise globally, oil demand will slow, it's as easy as that. The simple question is when.
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