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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: westpacific who wrote (25795)2/15/2005 1:47:52 PM
From: Jim Willie CB  Read Replies (2) | Respond to of 110194
 
what is your forecast for crude oil ?
and how does it mix with your USDollar forecast ?

I see oil and gold separated
those who see all commodities running together missed the mark
rising energy prices are economically smothering
they lead to liquidations, bankruptcies, economic distress
for that reason, high oil price goes with secular deflation prevailing, and thus lower gold prices

the fight for their lives you describe is equivalent
to a fight to prevent SECULAR DEFLATION from winning out

unfortunately, the Fed Reflation initiative is a grand failure
most new money has gone to household consumer debt
to mortgage debt on overpriced housing
to central bank intervention
to commodity investment
EACH SUPPORTS SECULAR DEFLATION, since each must be unwound

I see the resurgent euro currency rise soon to marry the resurgent crude oil rise, WHICH WILL ESTABLISH THE PETRO-EURO INFORMAL STANDARD
Russia will be the spearhead force behind it

your take on oil?
much depreciated, jim