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

To: Jim Willie CB who wrote (26499)	2/15/2005 2:13:44 PM
From: michaelrunge	Read Replies (3) \| Respond to of 110194

Jim, If oil continues to surge higher, as I believe it will, in an attempt to cap oil prices in local currencies, foreigners will allow their currencies to appreciate versus the USD. The goal is to adjust relative prices and pay less for oil which is priced globally (for the most part) in USD. But the inverse of USD is gold. Weak USD = Strong Gold and vice versa. So as the pain from energy prices hits, I think that gold will continue to go up, regardless of deflationary forces. USD may be a decent unit of account and medium of exchange, but its days are past as a store of value. That's the new role for gold ("new" in terms of recent history anyway). IMO, good hedges against the coming storm are foreign currencies, gold, energy stocks, mining stocks, and any hard assets that are limited in supply relative to demand. -Mike furl.net

To: Jim Willie CB who wrote (26499)	2/18/2005 10:06:56 AM
From: westpacific	Read Replies (1) \| Respond to of 110194

FNM just broke CRITICAL $60..... Derivatives Implosion coming?

To: Jim Willie CB who wrote (26499)	2/18/2005 10:07:34 AM
From: westpacific	Read Replies (2) \| Respond to of 110194

FNM just broke CRITICAL $60..... Derivatives Implosion coming?

To: Jim Willie CB who wrote (26499)	2/18/2005 3:05:41 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

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 This sounds more like the staglationary 1970's only worse as negative real interest rates are much greater due to BLS manipulating the figures. The attempt to reflate assets and debase the currency could work to prevent cleansing of much of the debt out there except in the extreme coastal housing bubbles that are as out of control as any mania in the past century. Looks good for gold unless wages and rents do not start a meaningful move up. Perhaps the 10% annualized broadbased CPI figures today are a start.