austrian63

Rising Rates, Oil Prices Could Trample Green Shoots

Oil will most likely pass the $100/bbl point before year-end. Mad-Hedge Fund Traised good points above re: the world getting smaller. It will take time for economies to adjust. In the interim, expect much higher prices for food, clothing, raw materials, along with energy and interest rates (cost of money). In essence, the scarcity of resources will become apparent except for labor.

Much higher production costs and currency devaluation will depress the dmand for labor in the U.S. There can be no gain without pain. We cannot have booms that seriously misallocate resources fueled by massive money supply growth without the pain of re-adjustment. The more our government does to prevent the short-term pain of recession the more likely we will have long-term pain. This will become more apparent as energy prices begin spiking again late this year and in 2010.

Jim Rogers Believes World Is Heading for Depression

To logicalsinger,

I think Jim Rogers does get the fundamentals of wealth creation. He knows that wealth is NOT created by creating money out of thin air. Wealth is created by innovation, production and exchange. Money is merely a medium of exchange and like any other product it is subject to the law of diminishing marginal utility. The more units of money that exist, the less value each unit has.


On Apr 02 09:05 AM logicalsinger wrote:

> I don't think Rogers gets the fundamentals of wealth creation. At
> the root is the intellectual property machine which has been until
> now US-based innovation and technology. Emerging markets wealth is
> derived from that root wealth creation when American and European
> companies move to outsource manufacturing and services. Until you
> see major proprietary innovation and intellectual property (tech,
> pharma, media etc.) coming out of emerging markets, I wouldn't get
> too excited again about those markets.