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To: ild who wrote (263374)	10/10/2003 12:29:27 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 436258

Ild, The ol' guvnor didn't have any problem accepting lots of dollars from the dairy mob. So, it was no problem for him. Alas, the only notable thing he did, other than accept illegal contributions, was take a bullet meant for the Prez.

To: ild who wrote (263374)	10/10/2003 3:09:24 PM
From: ild	Read Replies (1) \| Respond to of 436258

trotsky (P.Yorkie@OPEC) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved reported RESERVES are the basis for a member's production quota - when this method of allocating quotas was introduced, reported reserves magically increased by between 30-50% in a single year. these alleged reserve increases are therefore extremely suspect, and very likely a mirage. Ghawar, as they say, is dying. they have to pump in 7m. bbl. of water every day to keep its pressure up. the Mid East giants may be far closer to peak production than anyone now realizes. i see the past three years of massive OPEC-wide production declines in this light...they realize some of their giant fields will soon fold, and that's why they're now trying to conserve and concurrently squeeze out as much money as is possible. Date: Fri Oct 10 2003 14:16 trotsky (Stu) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved your incredulity notwithstanding, rising crude oil prices are indeed deflationary for the economy in the aggregate during a deflationary era ( the same is true for all commodity inputs ) . the reason is: the input cost increases can't be passed on by industry. no-one has any pricing power. as a result, margins are squeezed. likewise, consumer discretionary funds shrink as prices at the pump and heating costs increase - leaving less money to spend on non-essentials. so both businesses and consumers are forced to cut back spending not related to energy as a result - and this is deflationary for the economy at large. it was totally different in the 70's, as both businesses and labor had pricing power in spades. the energy price shock of the 70's immediately led to the dreaded wage-price spiral being kicked off. current data show that wage growth is about to go negative, indeed, it has reached the lowest year-on-year growth rate in over two decades. this proves that no pricing power exists - and thus, commodity price rises will continue to exert deflationary pressure on the economy at large.