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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (41973)	4/15/2005 10:37:22 AM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 206325

Yeah. They suffer the same inflation woes (when inflation is viewed as higher input costs, technically a symptom only) as the US if pegged... so the economic war if that is indeed the case is one of attrition... Frankly if the Chinese revalue the Remnimbi likely the Vietnamese etc may supplant them as a cheap labour source. Personally I too think that there is something happening here bigger than just normal demand but I think it is more along the lines of the wanting to ensure access to mideast oil as opposed to forcing the Chinese to repeg which may not have the intended consequences... Then again if I everything I thought was correct I wouldn't be posting here to have it validated or corrected... I'd be retired... regards K

To: Think4Yourself who wrote (41973)	4/15/2005 3:43:51 PM
From: Broken_Clock	Respond to of 206325

JQP, That's the way I see it. Works pretty much the same way in the gold pits aa well. One interesting side note....many believe one of the driving forces behind GW #2 was saddam's proclamation to switch Iraq over to Euro dollars when selling oil.... Made the classic Noriega mistake.

To: Think4Yourself who wrote (41973)	4/16/2005 1:19:00 PM
From: gregor_us	Read Replies (2) \| Respond to of 206325

John: The Equilibrium View of Oil and the Dollar Has been kicking around for many years. Reduce the supply of oil without reducing the supply of dollars, and, you've got oil that's more "expensive" in dollar terms. All other permutations of the relationship apply: expanded supply of oil, expanded supply of dollars, etc. Some people actually view the dollar has having little worth outside of the fact that it CAN buy oil. Of course, what's happened now is the supply of oil is falling, while the supply of dollars is (has been) rising. IMO, it's actually going to get much nastier and ugly. Meanwhile, I notice the latest Theme to hit the market is that the price of oil (in dollars of course) MUST fall if the US enters a Recession. I suspect this "belief" will be proven to be both lazy, and American-Centric (actually, read: Dollar-Centric) in the days ahead. Lots of academic work has been done on the dollar/oil equilibrium theory. REgards, LP LP