Tuesday, September 20, 2005
Times like this....
This is the SECOND attempt to type this. As the first was lost due to my striking of the back button. The face I made when it happened:
So lets get to the market. The Fed, on a crusade to kill your house's value, raises rates. And the market reacts with the USD gaining strength yet again. If you're sick of it, raise your hand.
Unanimous, just like I had thought. In reality, with Rita strengthening by the minute, and oil headed to $200 a barrel long term, the USD should have already died.
On this oil topic. Everyone in the media is afraid to address the increase in oil prices. Oil will be as expensive as gold in the coming years. OIL HAS PEAKED, yes, topped. Oil production will be coming down from here. At current consumption we have just until 2050. That is at current rates, in the future China will have revalued their currency (RMB) which should rise in value to the USD. What's this mean? MORE oil can be bought for LESS. Their economy won't slow for anything and I believe that we can expect to see growth in oil consumption.
Oil will always exist on this planet but the cheap oil will be an extinct animal. Exploring in Alaska is virtually worthless, while there is possibly billions of barrels hidden in the wildlife reserves, the amount of oil that can come out of the ground is not billions of barrels short term. The oil that will be produced is around one million barrels per day, currently about 1.25% of the consumption. This will add nothing to the bottom line and only destroy the wildlife reserve. Don't get me wrong if this oil could come up in 5-10 million barrels a day range, I would be all for it.
Next thing, the fed can't do anything about this event. The fed can't put limits on how much traders can pay for something, and even if they could there are many more markets where oil is traded. If the NYMEX shows $75 and China has rates of $100 a barrel where do you think the oil companies are going? The fed can't do anything, releasing reserves is only a short term solution. The only way to protect yourself is to whip out the futures account and long oil. With the current problems I think you could retire on gains from the oil futures markets.
If you have interest in new energy sources checkout this blog http://oilstories.blogspot.com
For the purpose of distributing the wealth to the younger generations....
So lets get to the market. The Fed, on a crusade to kill your house's value, raises rates. And the market reacts with the USD gaining strength yet again. If you're sick of it, raise your hand.
Unanimous, just like I had thought. In reality, with Rita strengthening by the minute, and oil headed to $200 a barrel long term, the USD should have already died.
On this oil topic. Everyone in the media is afraid to address the increase in oil prices. Oil will be as expensive as gold in the coming years. OIL HAS PEAKED, yes, topped. Oil production will be coming down from here. At current consumption we have just until 2050. That is at current rates, in the future China will have revalued their currency (RMB) which should rise in value to the USD. What's this mean? MORE oil can be bought for LESS. Their economy won't slow for anything and I believe that we can expect to see growth in oil consumption.
Oil will always exist on this planet but the cheap oil will be an extinct animal. Exploring in Alaska is virtually worthless, while there is possibly billions of barrels hidden in the wildlife reserves, the amount of oil that can come out of the ground is not billions of barrels short term. The oil that will be produced is around one million barrels per day, currently about 1.25% of the consumption. This will add nothing to the bottom line and only destroy the wildlife reserve. Don't get me wrong if this oil could come up in 5-10 million barrels a day range, I would be all for it.
Next thing, the fed can't do anything about this event. The fed can't put limits on how much traders can pay for something, and even if they could there are many more markets where oil is traded. If the NYMEX shows $75 and China has rates of $100 a barrel where do you think the oil companies are going? The fed can't do anything, releasing reserves is only a short term solution. The only way to protect yourself is to whip out the futures account and long oil. With the current problems I think you could retire on gains from the oil futures markets.
If you have interest in new energy sources checkout this blog http://oilstories.blogspot.com
For the purpose of distributing the wealth to the younger generations....
