Todd Peterson

High Gold Prices: It's the Oil, Stupid

I'm in general agreement with your views on oil. However I don't really see gold as that big of an issue, or particularly related to oil. Gold was used as a means of exchange in the old days, but it doesn't have more value than anything else, unless you need a filling in your tooth.

The main value of gold, as people buy it, is as a landing cushion if human civilization as we know it breaks down. In that case I'll rely more on my AK-47, 12 gauge, and .45. And my supply of rice and beans and hideout in the far north.

The end of the world as we know it is a definite possibility; read Jared Diamond for a taste of history on Collapse of civilizations.

But barring a sudden collapse of civilization, we must move with a weak dollar policy. Its the only way to reduce our trade deficit and revitalize our manufacturing sector. In actuality, in terms of purchase power parity, the dollar is not really misvalued, but China is throwing the whole world out of whack with their undervalued currency. But since we can't control them, and we can't cut off trade with them, our only recourse is a weak dollar policy. Most sensible economists will accept this, and the only reason it isn't more widely stated inside the Beltway is that it is politically incorrect.

Regarding the price of oil again, it will soon begin to be listed in other currencies than the US $ and that will be painful, but it will lead to the type of changes that the author of this article has been seeking, so it will be healthy pain.

In the meantime, because oil contracts are denoted in dollars, oil becomes cheap for Europeans and others who have currencies that get stronger on our weak dollar. If we want to strengthen our dollar we need higher interest rates, but that will raise the cost for our government and citizens to manage their debts. There is NO easy way out. A weak dollar policy is the ticket for now. And that will push oil up. But who cares about gold..... I don't.

Pricing Oil in Big Macs

The Big Mac Index gets its value from comparison between countries around the world. Of course it is also helpful for comparisons to a commodity like oil that is so unpredictable within a country.

But what you need to do next is track the cost of oil in Big Macs in other countries, such as France, Germany, China, Japan, etc.

Crude Reality: How Long Can Oil Stay Down?

Interesting Article. But I agree with the other posters that it is missing the fundamental understanding of long-term trends in oil supply, and the fact that currend oil demand destruction is temporary and an anomaly in the overall oil situation

More DXO for me.

Exxon's 2007 Tax Bill: $30 Billion

Oil Companies and Car companies have ruined America! Big fat vested interests that have prevented technological and social progress and continued to encourage antiquated technologies that force to to make deals with the devil.

Time to move along.

Still Considering Oil

Thank goodness for the clever folks that "know" that oil will stay low, and that oil-price increases are years away. They are the ones that allow for opportunities by those that invest based on fundamentals. I am buying DXO now.

All you have to do is look at the previous demand and supply figures and you can see that it is headed back up. The only reason it is down now is because we're in a depression or recession. Once it is over, we will once again see that supply does not have a chance of keeping up with demand. It is really very simple. Todd Sullivan is right on target to recommend DXO.

The only thing I'm worried about is that disruptive technology advances will put the oil men out of business for good. And if that happens, as a good American patriot, I'll celebrate it and eat my losses in oil.

Wind Power: A Research Primer

Thank goodness for the clever folks that "know" that oil will stay low, and that oil-price increases are years away. They are the ones that allow for opportunities by those that invest based on fundamentals. I am buying DXO now.

All you have to do is look at the previous demand and supply figures and you can see that it is headed back up. The only reason it is down now is because we're in a depression or recession. Once it is over, we will once again see that supply does not have a chance of keeping up with demand. It is really very simple. Todd Sullivan is right on target to recommend DXO.

The only thing I'm worried about is that disruptive technology advances will put the oil men out of business for good. And if that happens, as a good American patriot, I'll celebrate it and eat my losses in oil.

Still Considering Oil

Thank goodness for the clever folks that "know" that oil will stay low, and that oil-price increases are years away. They are the ones that allow for opportunities by those that invest based on fundamentals. I am buying DXO now.

All you have to do is look at the previous demand and supply figures and you can see that it is headed back up. The only reason it is down now is because we're in a depression or recession. Once it is over, we will once again see that supply does not have a chance of keeping up with demand. It is really very simple. Todd Sullivan is right on target to recommend DXO.

The only thing I'm worried about is that disruptive technology advances will put the oil men out of business for good. And if that happens, as a good American patriot, I'll celebrate it and eat my losses in oil.