Market Comments July 1 2008

Market Comments July 1 2008
By Hans J Lysglimt

Category:

News & Politics

Tags:

• Market
• Comments
• July
• 2008

[farmanntv]

This is a timing game.

Again: timing.

Cash now, only now, for the short haul.

Do not hold this cash more than 1-2 years.

[SunnyDaysRFun]

Listen sir. I don't like the fact that you USE Ron Paul to inspire traffic to your video. Ya make me sick.

[farmanntv]

You have a point, I will consider that.

Though I aim to speak from a Ron Paul perspective of the world.

I did several videos today with the same Ron Paul background.

[greenmarcosu]

This may be a dumb question but if my money is in a checking or savings acount is that still considered "cash"? Also, what is an easy way for the average person to diversify into other currencies?

[farmanntv]

Yes.

And yes, talk to a broker to buy bonds or buy notes.

This is for 1-2 years only.

[davincij15]

Wow people are still in this market? I failed to cash out in January when you first said so. But did so in February and got into gold and silver after it fell.

[farmanntv]

Well done.

[theCommenteer]

google "money week deflation," if interested.

[theCommenteer]

There's a Money Week piece on inflation today which agrees with Hans except on the point of gold and silver. I can't seem to include the web address however I mangle it, but you can probably google it.

[kkob]

Iraq would be producing only about 1 million b/d more than now without the war. Saudi Arabia filled in after they went off-line. But, oil is declining at over 5% a year. That's closet to 4 million b/d we need each year of NEW production just to tread water. Add another 1.3% increase in demand, and we are near 5 mb/d just to break even. It's not happening.

Economics doesn't explain finite resources well.

Peak Oil.

the oid drum

[kkob]

Further, oil is finite and our ability to produce it is limited by geology, current technology, and other factors. Because it is finite and is the backbone of our civilization, scarcity creates very high prices. Oil production (crude) has been flat for three years while demand has soared. How can prices not rise? Also, the large price rises started in 2003: before the housing bubble, before the speculators scare and before the economy was tanking. Is it due to Iraq? No.

[kkob]

When discussing commodities it is best to consider which are necessary and which are discretionary. Oil and food are non-discretionary. The other consideration is which are renewable and which are finite. Oil is finite. If you look at the price of oil, it has risen far higher than the dollar has fallen. It is not a bubble. Further, it is not speculation. Speculation is restrained in oil: speculators can't take delivery so the price is its true price each month. That is, they can't hoard it.

[theCommenteer]

What he have now is very much like a fractional reserve gold standard, the rare physical currency taking the place of rare gold as it backs the credit. It works so long as the physical currency is rare and there is no run on the physical currency. Confidence comes from the fact that the government backs bank deposits and can print up the currency if needed, so we don't get general banking collapses anymore as we did under a gold standard. The price we pay is a constant inflation.

[sollycardy98]

but inflation will surely skyrocket when market goes down even more?

[poodlepink]

No don't run out and sell shares and crash the market!!