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To: mishedlo who wrote (54189)	2/18/2006 12:58:40 PM
From: UncleBigs	Read Replies (2) \| Respond to of 110194

Mish...I'm not sure I buy the rising cost of oil is deflationary argument. It's no more deflationary than rising home prices, rising rents, rising food prices, rising education costs, or anything that is an essential to everyday living. Rising prices of essentials indicate an excess of demand/liquidity over supply. Over time, either wages rise to keep up, supply increases as a result of price hikes, savings rates decline, or standards of living decline.

To: mishedlo who wrote (54189)	2/18/2006 3:48:54 PM
From: shades	Respond to of 110194

Rising price of oil would be hugely deflationary To who? Not he USA eh? Doesn't our gubbment say dollar values are not OUR problem - but the rest of the worlds? They must think they can get OIL no matter the value of US green paper - where the rest of the world is linked to green paper perhaps? Rising in US dollars? Rising in Chinese yuan? Less barrels versus number of chickens you export? If chinese yuan floated, as their currency got stronger in world VALUE - thier PRICE of oil in yuan would go down right? Currently it seems they support our dollar until they have sucked every REAL asset away and then they will demand extremely high interest rates before letting the dollar collapse. So for the short term, DOLLAR HOLDERS are living la vida loca eh? If I have lots of US green paper, and that is all I can use to get OIL, then I need that stuff - benson says if the saudi boys wont take US dollars for oil and ONLY us dollars - time to boot them out of power. Now if I could take chinese cars like a chery, or chinese laptops like lenovo, or chinese chickens without bird flu, or chinese engineers and scientists making my medicine - I may trade oil for that - but what if Mr. Bush likes being the middle man - and sends in his economic hit man and tanks and tells me NO - you cant take chinese cars and laptops and medicine in exchange for OIL - only US green paper - what is a corrupt saud prince to do? He tells mr. chinese man, I want your laptops, but you have to give me green paper for oil and Mr. Bush is the one that gives you that - so they give us STUFF - we give them green paper - and then they take green paper to saudi boy and get oil. Now you and I know that the middle man is not necessary and causes inefficiency in the system - but he sure doesn't want to get cut from the loop eh? Is china man gonna start backing corrupt saud prince instead of USA boy? If saudi boy pisses off Bush - why should Bush support the corrupt saud royal family? Saddam didn't want to be our puppet anymore - so he had to go. If our forces and resources weren't mounting for iraq, iran type stuff maybe chavez already be gone according to hit man perkins. Why should the US play fair in world trade of OIL and let a true free market in OIL come to be when we have the big tanks and guns and instead of having to WORK for and produce things to trade for oil - we can just be the big bully and take what we need? Bush is so mad he is actually demanding the scientists find us FREE ENERGY to run our nation on and show those oil boys we don't need them - we got cold fusion! The native american indians thought the great earth spirit was behind them against the white man taking what he wanted - but they lost - they are lucky white man let him have few reservations and even abramoff get a little corrupted in that - but the US not seemingly liking all these oil countries telling us they want more of the PROFIT now - niger delta, venezuela, iran etc etc Some here are convinced we can't CONTROL the world anymore and her oil flows, I don't see that, I see lots of drone airplanes and tanks and joystick jockeys more than happy to blow up his fellow man. When I see a chinese aircraft carrier within a few miles of Miami - then I will accept perhaps the balance of power has really changed - I don't expect to see that anytime soon. Do any of you? So as long as saud family and others are corrupt and need US middleman to HELP them stay in power - why is rising price of OIL in US dollars (which we make) gonna be so bad for the USA presently and send us into deflation? From what I saw in history, egypt, rome, spain, britain one empire does not collapse and another spring up immediately in its place - one empire collapses - like russia - many little empires spring forth - war and fighting ensues - and then over time another empire emerges - if history is any guide - after the US global police man collapses IF he collapses (I have my doubts in this new orwell world) - it wont be china to replace us - but lots of small nations all infighting - maybe china will have a civil war and we will too like the Soviets did - and after many years of small nations and anarchy - a global power will rise again. He who controls the spice - controls the universe.