Surprise Friday

[xenix2012]

$300 bbl doesn't seem so far fetched now does it?

[rsnic]

This is nothing to do with oil demand, in fact opec is expecting less demand. Pretty soon no one is going to be selling it in U.S dollars because its not worth anything, there is too much U.S currency in circulation. You can still buy pretty much the same amount of oil as you could 10 years ago if you paid for it in gold. Compare the price of gold to the price of oil and you'll see that the value of money is what is changing.

[UnderseaCaveman]

If you compare the Price of Gold and Price of Oil, you will see that while "both boats are rising on the tide of dollar devaluation", Oil is outpricing Gold steadily at 4%/yr. Every year you get less barrels of Oil per Ounce! Peak Oil is here!

[UnderseaCaveman]

.....and of course, some are saying Gold is peaking... check out in South Africa (Gold Corp).

[rsnic]

My point was that the main factor of high prices is that the US is destroying its currency. The rise caused by demand is insignificant compared to that. You could say gold is peaking if you had no idea about how currency supply works.

[UnderseaCaveman]

"you could say gold is peaking"....

I must clarify... I mean "Gold Production is Peaking" (the Production was assumed, my bad).

Well, if there was no inflation, and Gold was "ready to discover and produce", then we would still see that Oil Price rising 4% per year, when in fact it should be falling (Volume discount, technology improvements)...as it did throughout history (even with steady inflation)... Peak Oil is HERE!

[rsnic]

I'm not convinced that peak oil will occur in my lifetime, it will eventually occur though provided we don't switch to another energy source. There is nothing pointing towards shortage or slowing of supply worldwide. I would be more worried about Qatar and UAE are probably going to stop trading oil in USD this year, when they do more will follow and accelerate the fall of the US economy.

[UnderseaCaveman]

Hint, we haven't discovered a major Oil Province in 40 years...GLOBALLY! So, Peak Oil (Demand exceeds Supply) is due now, it already happened last year! Of course, if they punch more straws per field in ground, we will have an asymetrical Bell Curve!( ie, steep down slope).

[rsnic]

Sorry its just not happening any time soon, peak oil theories have been around for 80+ years but they all prove wrong. OPEC's figures show demand has been lessening since 2006(despite rising capacity). The peak oil argument is just being capitalized by people to shift the blame from US economic self-induced destruction.

[UnderseaCaveman]

Let me clarify:

OPEC's figures show a lessening the rising demand curve, however that is natural as price is pushing down any "elastic demand"....then there will be a sharp price jump when we hit "inelastic demand" (the must have areas of industry).

Well, for sure, time will tell.....til then, Aloha, USCVM!

[jkrame3]

I like how they all are laughing at him. Lets see in a year or two if they are laughing so much.

And the comment about China and India- that was just a wise crack (with some truth). We will not do anything to slow them down because it is bad for business (where do you want to get your cheap toys from?)

[turn74]

Totally agree with you 100% on this....

[julebuggy]

Some predict those cheap toys won't be coming here for much longer.

Why would you as a Chinese manufacturer want to send your goods for monopoly money when you can sell it domestically to a country with 35% savings rate and a de-pegged yuan that shoots up in purchasing power?

[jkrame3]

Indeed. There won't be many "toys" for much longer.

It really won't even be a choice, though. We won't be able to pay and they won't be able (or perhaps willing in the beginning) to send.

What good is it even to save (dollars) at this point? Stock market is going down, dollar value is going down, and inflation is going up. The question is starting to be- where do you lose the least rather than make the most?

It might be time to get used to the idea of having a lot less.

[julebuggy]

read all threads related to "peter schiff". You can get out of the US dollar by buying foreign stocks paying FOREIGN currency dividends. High yielding ones at that!

You don't have to invest with EuroPac, but few others are as honest and pure in their philosophy.

[missbossy1]

Not that I haven't believed it for some time, but once you start hearing the peak oil story seeping into the mainstream, instead of from just us crazies, it sends a chill down the spine.

If the US is willing to suffer the Iraq quagmire to secure black gold, what will the west be willing to resort to in order to stem demand from China and India? The US economy is perched on the edge of a precipice now. Strong arming the emerging economies in the usual fashion is not an option anymore.

[kevinabt]

The information is clearly out there. No one who is paying attention can claim ignorance.  Its time to take action, but there are no easy actions to take. Quite a predicament this world is in. I predict that many tough choices and hard sacrifices are in our future.

[CusterFlux]

I LOVE the legalese!

Oh we just say this crap, don't hold us to it, it's just entertainment, bla bla bla.

As American as apple pie.

[osmanca]

"We shouldn't have let China and India grow."

Washington know this and is trying to achieve exactly that. Better late than never.

[reveldevil]

"...we probably shouldn't of allowed China and India to grow." The room fills with very uncomfortable chuckling...

[geir44]

Again an interesting perfomance by Matthew S.

btw: Who are the two funny-looking bald guys?