thesheet

Why the Sudden Run Up in Natural Gas Prices?

I believe Obama will come out with a more comprehensive energy strategy soon. Cap and Trade is only part of the strategy. I remember him mentioning that the first stimulus bill had very little energy related components to it.

I think a new stimulus bill will come out in January as part of Obamas nations address.

I believe insiders know that natgas will figure prominently AND they are acting on inside information!

How's that for a conspiracy theory!

thesheet

Exxon's Biofuel Bet

Based on my data, which I googled. It would take 73 million acres to completely replace the United States gasoline consumption with algae-based bio-oil.

Not counting any (if) refining losses.

thesheet


On Jul 20 07:59 AM Lara Crigger wrote:

> Yes, per year.

The Problem with Free Markets? Look in the Mirror

"This relates to the observable fact that we are accumulating more and more debt for less and less growth".

This makes me think of a book by Donald Coxe. The New Reality of Wall Street. In it he talks about how the market will not leave a bear market until the cause of the crash is removed.

If this is the case, then this bear market has only started. The inefficiencies of using debt on top of debt are building to a climax and the government is trying desperately to keep a system of diminishing returns alive.

Setting us up for a greater crash?

thesheet

There Are No Good Choices for the Fed

I agree with your view that gold is seen as a neutral currency.

I disagree that the price of gold is going only due to forecasted inflation
Gold is also seen as a safe-haven for economic uncertainty and collapse. The idea that Gold is only good for an inflation hedge is, in my opinion a half-truth and simplistic at best.

Various central banks are purchasing more, asking for their stash to be returned from London or indicating they won't be selling their gold reserves. They are probably doing this as a way to diversify out of US dollar(currency neutral), but I think in the back of their minds they are worried about systemic risks associated with the current economic system in general. Derivatives, which were initially meant to reduce risk, was and still are threatening to cause another collapse. Ironic!

I think it will take some other unforeseen event to cause portions of the derivatives market to collapse; so we are safe for now. It is a risk though!

Gold does well during deflationary collapses as well as inflationary episodes. During the 1930's deflation, gold was pegged to US dollar. I proxy to gold would have been Homestake Mining. I can't copy the chart, so here's the webpage. oxburyresearch.com/tag.../

Notice the shares going parabolic? The massive upturn was probably due to gold being seen as a safe haven during economic collapse. The US government made gold illegal to own april 1933. The shares went ballistic because since gold was illegal to own, people went for the blue-chip proxy for gold. Homestake.

( In case you think that homestake only went up when gold was made illegal should note that the chart was beginning its parabolic run before the government made gold illegal to own. Although there could have been insider buying from people who knew about the confiscation ahead of time).

Conclusion: Investing in Gold bullion may not be as bad as it would seem. It would be better to think of gold as a safe-haven as opposed to only as an inflation hedge.

Gold companies do get dragged down with general markets, but during outright deflation their costs go down!
Gold maintains its value, which increases the companies profits so eventually investors realize that gold companies are the only stock investment that will do well during deflation.

thesheet

Why Is Deflation Scary?

Something else to consider.

The vested interests in the fractional banking system prefer inflation.

When the monetary supply is initially inflated, the people that benefit the most are those who get the new money first. Before the inevitable inflation occurs. The money they get is in today's dollars. Once they use the money, it gets out into the general economy and that is when inflation hits. The average person gets money last in the form of wage increases (if you're lucky), but only once inflation occurs. In other words normal folks are not benefiting from inflation at all. In fact it is a tax, an indirect tax, a sneaky quiet tax; but a tax...

Exxon's Biofuel Bet

......................... strains of algae can produce 2,000 gallons of fuel per acre, compared with 250 gallons for corn-based ethanol".

Is that per year?

Oil at $140/Barrel: Justified or a Bubble?

Re:nationalize the airlines! Jeez in Canada we had a nationalized airline called Air Canada for years. It was privatized in 1988 I believe and we are still recovering from the horrible inefficencies that government can bring to any business. In the 70's the prime minister turned it into a make-work project not unlike the hoover dam was in the 30's. The airline was called maple-flot. Which gives me images of the Soviet airline Aeroflot. Bad service, bad costs,bad,bad everything (except maintenance and employee pay).

thesheet

Who's to Blame for the Commodities Boom?

I would like to respond to the comment about how investors will destroy the economy by investing in commodity derivatives in order to speculate.

Perhaps the money flow into commodities (bubble?) will provide enough impetus to force the world's governments to come up with a worldwide solution to the proper management of all commodities sooner than later.

Structural changes to the way we grow food, use metals and energy must happen. I would prefer the change to not occur from inflation/recession resulting from a commodity bubble but the ball is in the policy-makers court.

Perhaps we should send letters to your member of parliament or congressman indicating the need for government policy change at every level with regards to all commodities.

Bottom line, free market is going to force changes one way or another. Proper government planning is needed to moderate those changes.