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Strategies & Market Trends : Waiting for the big Kahuna

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To: Monty Lenard who wrote (28802)9/24/1998 6:52:00 PM
From: Haim R. Branisteanu  Read Replies (1) of 94695
 
Monty, inflation is the only medicine against deflation. A while back I pointed to the fact that gold is moving up at a time we have an inverted yield curve.

Most nations in trouble are rich in commodities, a spike in oil and gold will help Russia substantialy. Their cost of oil is around $5 and an additional $3 or $4 for transport so we have around $8 to $9 cost basis.

Now just think how much they will earn if oil goes back to $20. Natural gas their main export is also pegged to the price of oil as it coal.

AG will inflate, and by this save several countries including Japan, Indonesia China and Russia.

BWDIK
Haim
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