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

To: mishedlo who wrote (67824)	8/9/2006 6:26:21 PM
From: benwood	Read Replies (2) \| Respond to of 110194

The vast majority simply do not think, either because they are not capable of critical thought, apathy, or feel so disempowered that they do not believe thinking will change anything (my father-in-law's pov).

To: mishedlo who wrote (67824)	8/9/2006 6:40:12 PM
From: shades	Respond to of 110194

Think of the absurdity of it. No wonder this country is so fucked. Everyone thinks like the Fed. BWAHAHA - they can only think in terms of green paper or shiny metal - that is why I like looking at crackheads - money or shiny metal means ZERO to these folks - every decision every second is how to score that next yellow rock (no not gold) HAHA! Gives you a new perspective on economics.

To: mishedlo who wrote (67824)	8/9/2006 6:46:36 PM
From: GST	Read Replies (1) \| Respond to of 110194

Oil going from 15 to 75 per barrel is most certainly inflation.

To: mishedlo who wrote (67824)	8/9/2006 7:16:35 PM
From: Tommaso	Read Replies (1) \| Respond to of 110194

>>>oil has noting to do with inflation NOTHING<,, That's what I used to say. But high-priced oil reduces the production of all sorts of things and contributes to an imbalance between what is produced and the money that is available to pay for it. Inflation can occur because of excess money creation, but it can also occur because a scarcity of goods to spend what money there is on. That is one of the things that happen in real wars, when goods and services are consumed by the destruction of the war--even if there is no appreciable increase in the money supply. (In fact, there usually is an increase in money supply unless constrained by svaings, as happened in the U. S. in WW II). So the seemingly benign current U.S. monetary statistics do not guarantee an absence of price inflation. If there is less to spend money on, prices will rise. And scarce and expensive oil tends to restrict what there is to spend money on.

To: mishedlo who wrote (67824)	8/9/2006 7:38:26 PM
From: TobagoJack	Respond to of 110194

<<Would 8% interest rates bring down the price? How about 18%>> ... :0) I would imagine 28% interest rate would reduce oil demand by quite a bit, unless accompanied by yet another and larger round of money printing (which would be the inflation part).

To: mishedlo who wrote (67824)	8/10/2006 10:17:05 AM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 110194

Right. So the fact that oil has gone up 1000% in Zimbabawe currency had nothing to do with inflation. Oil is a global commodity that just happens to be priced in dollars. In Brazilian Real terms, oil has barely budged in the last two years because the Brazilians are maintaining 10% real-rates and are virtually external debt free. Right now oil is all about the debasement of currency and gold, by virtue of its historic ratio corrleation with oil, is the same. When interest rates rise globally, oil demand will slow, it's as easy as that. The simple question is when.