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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (24035)	10/8/2002 7:55:48 PM
From: TobagoJack	Respond to of 74559

Hello Snowshoe, I am on way to Beijing until Friday noontime. <<oil ... drop to $6/barrel>> is not within the sensitivity parameters of my planning model at this time. At that price, every country of substance would be stocking up on strategic reserves, and converting forex reserves from solid gold and softer wood fibre to liquid oil and its derivatives. The state of Alaska should then collect a tax from its residents, buy oil from ME and pumping same into the ground until appreciation and distribution time. At that price, our Maurice would be trading in his then sharply appreciated QCOM for the severely devalued XOM, for the next leg up. But, as per current plan, Alaskans are funding an invasion of Iraq, enthusiastically volunteering to engage as a counter-party to perpetual asymmetric war in order to secure endless anguished peace, and take the oil fields. So, you see, the powers that be has no interest in $6/barrel oil, for what would be the point? <<reality starting to bite ... dividend nil>> ... is one of many consequences of the risk-free rate (real) being negative, thanks to Greensputin [Yes Maurice, here is why: since risk-free rate is negative, then risky rates do not need to be positive, and therefore all assets drop in value and/or return to show a ROI slightly more positive than risk-free rate, namely zero %, since not many things are worth anything in a world of collapsing financial systems. Gold? well, if the financial system is collapsing, and nothing matters anymore for the moment, why should gold be any exception, until the bottom, when inflation takes hold of the carcasses, and zombies rise in revolt]. Yes, sense the perturbation in the Force that powers finance-scape, seek the truth from the facts, and know that the financial system is collapsing, because financial yields are negative unless contorted by derivative steroids. The 0% financed question is, 'will the system collapse completely, or muddle through after halving the investment population?'. In the meantime, I will be pondering about what to do with the effectively free Yen I have secured from the hapless Japanese. I had no particular plans for it, knowing only that they would not be needing it, and I am about to triangulate for a profit-enhancing solution in real time, at 600 miles an hour, 30,000 feet in the air, while trying to avoid financial disasters. Maybe I will use the proceeds to fund up an account through which I can do again and once more the same with the Philippine peso, then Indonesian Rupiah, and ... to play a game of 'last currency standing' by using all the loan proceeds to buy the single and true money (the one money that rules all cash). The mind starts to boggle;0) In a finance-scape populated by one-eyed zombies thinking they each have three eyeballs, I am blinded by the facts, and so I must stop looking and start thinking. Chugs, Jay