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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: Gary Kao who wrote (36523)3/3/2002 11:58:07 PM
From: Jim Willie CB  Respond to of 99280
 
a vicious cycle is likely for $priced crude oil
I expect not only gold/silver will rise in coming months
but also crude oil by the barrel
and in lockstep, natural gas

from my understanding of various commodities, the biggest runup in price after the world economy recovers (even moderately) will be natural gas

with new electrical generating plants, household conversions for heat, industrial uses, and environmental mandates for cleaner emissions, natural gas will explode much higher than seen in 1999-2000 peak price

but yes, the Fed money supply inflation IS FINANCING the war effort so far
we screwed Arabs OPEC sheiks in the 1970's
and we will screw them again as creditors, owning some Treasurys

the biggest surprise upcoming might not be the slight rise in bond yields, it might be the bigtime inflation that comes and brings much higher rates and higher mortgage costs
ooops, there goes the real estate bubble

we will see
the main question in my mind is the action by blueblood mega $Maire bondholders
they are a smart riskaverse bunch
my guess is they will not pile into stocks
THEY WILL EXIT BONDS THOUGH
they are likely to stay in money markets
and move somewhat into gold/silver, either physical or stocks
whoever follows them will profit handsomely this decade

/ jim