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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (12700)	10/3/2004 11:54:50 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Of course, I think it already has but is areas that are strangely not measured as inflation. As long as a lot of people feel richer from feeding at the trough...it will be ignored. When it starts to hit them in the pocket book..aka oil etc. then it will suddenly be a problem. Do you believe in peak oil or not? Even suppose you do not, just how high would US interest rates have to get to affect the price of oil? Assuming you have some sort of rational response, what does interest rate policy have to do with oil? I suggest that it should have very little. This is not the 1970's where wages and prices on finished goods were rocketing up. If there is really peak oil, and demand for energy in the US and Europe stays reltively fixed (a decent bet), oil prices at the margin will be set by China, Brazil, India, and other up and coming countries. would interest rates of 15% stop that demand? Mish