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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (21477)7/23/2009 2:29:25 PM
From: jazz_lover  Read Replies (1) | Respond to of 71424
 
Vi.
You mention crude costs 80 to produce currently, and you also stated that number earlier but I thought it was a typo.
Are you sure about that number? It just seems high in my opinion.
Thanks for your posts. Slider, Rarebird and yourself make up the majority of my "post" reading.
Is there anyone you follow religiously, if you don't mind me asking?



To: Real Man who wrote (21477)7/23/2009 9:00:38 PM
From: Tommaso  Read Replies (1) | Respond to of 71424
 
I'm not forgetting anything. I am remembering from my experience.

When the inflationary effect of the Fed's irresponsible actions makes itself felt, the prices charged for energy will rise along with everything else. But the expansion of supply of natural gas will make it less of an inflation hedge than oil and gold. There's no supply constraint that will force the price of natural gas ahead of other commodities. It will remain, as it is now, in surplus for a long time.

Betting on a sudden rise in natural gas prices is not a very good bet. The decline in the price of natural gas is just a consequence of the sudden increase in evident supplies, and that increase is not going to vanish suddenly.