sickofthehype

Why Oil and Gold Are Headed Much Higher

Oh, I re-read my comment and it sounds as if I am stating Democrats bring about inflation. Not so, it's just a coincidental thing. I'm not a Republican and I'm not a Democrat, so I could care less about the parties involved, it's just how it is.

All the mattress money out there will start hitting the system at some point. Look out.

Why Oil and Gold Are Headed Much Higher

Armagedon - IF banks start lending again? Banks must lend to survive, so IF they don't lend, they're toast. The question is not IF they lend again, it's WHEN they will lend again. LIBOR coming down huge, money infused in the system will start flowing, and lending will most definitely crank up again at some point in the near future. We're in a short term deflationary environment, but you can bet inflation is on the horizon in a big, big way.

Look back to Carter being elected in 1976. A democrat promoting 'change'. 7% 30-yr fixed mortgages when he was elected that were near 18% within just a few years. We inflated the living crud out of our economy, and despite HUGE interest rates, most real estate doubled in 4 years. Then again, so did everything else that was a commodity. I think we're on the verge of another similar era where we'll see another Democrat elected with the promise of 'change', and within the next two years inflation will be UNBELIEVABLE. I'm not promoting gold, but you can bet that it, along with oil and real estate and any other hard assets, will skyrocket.

Why Oil and Gold Are Headed Much Higher

SW Richmond - Good points, however, the 'destruction' is far far less than the new money being created, not to mention our debt increase. The increase in money supply is outrageous, and much of the 'destruction' are paper losses anyhow. Short term deflation is likely, but looking forward inflation will be in full force. You betcha.

Why Oil and Gold Are Headed Much Higher

$7 trillion in money from thin air across the globe in recent times - and this inflation producing fact will push up oil WELL before 2011.

Remember this summer - everyone was predicting $200 oil. Now you hear predictions for $30 or $50 oil. Who can you believe? Not anyone calling themselves an 'analyst'.

Oil will be back up before you know it, so now's the time to get in on some cheap oil stocks. I personally jumped all over Suncor at $19 the other day. FIRE SALE!!!!! 3 year hold on that should work out pretty good...