OFF TOPIC
M,
Oil is the most important commodity in the world. We can often find substitutes for most any other thing we need in our modern economy, but we can not survive without oil.
As end users, we often don't think of it that way, but if you are in the oil business, or any extention thereof, you understand this fact. Deprived of rice, we use wheat. Deprived of oil, our society fades.
Deprived of Sony electronics, we use Motorola. Deprived of oil, we burn whale oil in our lamps, or we build more nuclear powered generators.
Deprived of dollars, we use gold. Deprived of oil, we plow our fields with horses.
We are now living without gold as a retail medium of exchange. No one needs it for daily life. For that purpose, we have substituted gold for dollars. We have no subsitute for oil.
Those who produce it recognize they will not be able to bring it out of the ground forever. If they replace these assets with gold, which I think they are doing, they will have those reserves forever, and, unlike Argentina, I doubt they will trade them for US treasury issues.
Hope this helps.
VP |
