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

To: mishedlo who wrote (12701)	10/3/2004 6:46:18 PM
From: Jim McMannis	Respond to of 116555

RE:"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?" I'm not sure what you mean by peak oil. How high would rates have to go to effect oil? Anything I say would be a WAG. OTOH, with the far east coming on more and more as oil consumer I'd venture that the US is less a determinant that it once was. Perhaps the better question is...how high does the price of oil go before it starts to slow world economies more significantly. Now based on the moves in Real Estate prices, you'd expect rates to be a lot higher. At least over 10%. So why are they so low? You say they reflect deflation and are justifiably low. Doesn't matter what AG does with the Fed Funds rate. Russ says they are artificially low because the FED(s)are running the printing presses 24/7 and thinks measured inflation is one small step from a rocket launch. I'll ride the fence and say that the economy is just out of whack. Big time and it must adjust. Like a snap back of a rubber band. Jim