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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (55704)	10/3/2009 1:51:09 PM
From: elmatador	Respond to of 217944

Oil and the Great unwinding. Gold and oil are the same asset class. As USD reserve currency status holds in the balance, capital needs to be protected. The value backing the USD is much less than it seen by the general players. If USD falls off the cliff from one day to another it would be better to have a sack of potatoes inside your house than money in the bank denominated in USD. In this case Brazil is pouring money into oil at a tune of USD100 million a day. That is its reserve that are not the USD foreign reserves China, Japan and the GCC have. When I constantly point here the value of assets, I mean assets that can be sold. Oil, food, agricultural stock of capital. Of course the USD has assets inside the country. But cannot be sold in the world market. GCC buildings in the sand, Spanish real estate are examples of the assets that cannot be downloaded since customers want oil, food and materials. That is the reason that Eastern Europe, Ireland and Iceland could not be saved. They had nothing that could be bought to keep teir economies going and show capacity of paying their debts and keep themselves afloat.