gabe borenstein

Why Oil and Gold Are Headed Much Higher

In order to predict future one must study and understand the past.
Clearly the record oil prices driven by the speculative elements (hedge funds)have contibuted to an inflationary perceptiion ,driving all of the commodity prices to record highs.
The price spiral that had followed ,especially in the energy and the food complex had obliterared the disposable income and had collapsed the final demand.
The sequential events that had followd nearly derailed the economy and almost imploded the financial system.
The unprecedented "rescue " that followed will not be repeated again as it would bankrupt key economic zones.
The point is that the governments and the Central Banks will not allow for the oil prices to head towards 150 dollars per barrel .
No doubt in the future ,the exchanges such as NYMEX will be compelled to impose 100% margins .As the past history reflects ,such an action will implode the commodity prices.
So much for the future inflation.
Gold at 1500 hundred dollars ,not likely.Any negative impact on the future global liquidity will only enhance the massive flows into the dollar and the dollar denominated assets.
Somehow ,I can't visualize kilobars being exchanged for consumer goods.