dsrtwriter

Commodities for Income Investors

Very good article. Instead of a Prius, I get more comfort and physical protection (ie German steel) in my 1979 Mercedes 240 diesel stick shift, which costs me almost nothing to maintain.

And it actually looks nicer in style, even after all these years.

Peak Oil: China vs. USA

You neglected to add that China has been buying interests in the oil sands of Alberta, and could well make more investments in Canada to assure a supply of oil. I guess in a few years we will be commuting to work in Rickshaws to reduce our carbon footprint (very Obama), while the Chinese drive around in cars.

I agree with you that natural gas is a "natural" especially for our trucking industry, as Boone Pickens has advocated.
Unfortunately, just as you are, Pickens was infatuated with Obama who tells everyone what they want to hear, and he has disappointed on the natural gas front.

It just goes to show that when you vote for someone who makes you feel good be careful what you wish for. Barack talked a big game on electric cars, but how much have you heard about nuclear power to provide that electricity?

No matter, we all feel good, we are post-racial, etc. that's what matters.

Portfolio Performance: Positive. Market Outlook: Hazy

Davy's analysis is well considered. Regarding the bounce back after the 70s and 80s, I don't think it is analagous to today, where we have massively outsourced our manufacturing to a dangerous point in the name of the religion of "free trade and efficient allocation of resources".

The "consumer" always wins with free trade and low prices, until the "consumer" loses his job when his plant closes. Of course if we are all government employees, professors with tenure, or lawyers, we love low prices from overseas because we do not produce goods.

Truly a house of cards,endorsed my most economists (except myself).

Trying to Catch a Falling Dollar

very well written analysis without hype. Sensible advice.For those of us not versed in options, a further explanation of the puts and their cost/benefit by an example would be helpful.But I agree that at this point some dollar cost averaging into dividend stocks makes sense. I would also add NOV as a company which has seen its share price savaged by hedge selling, despite great fundamentals. Also FWLT.
Fine, let them drift down more, they won't go to zero, and with dollar cost averaging of existing positions it can pay to go against the crowd.

Oil, Iraq and U.S. Foreign Policy: A Way Forward (Part II)

I will overlook the general ad hominum attack on the administration, straight out of the Democratic playbook, although as a true conservative I have many problems with administration policies, from the Dem/Republicans both ignoring the wishes of the people for a secure southern border,etc.

In fact, I applaud Democratic Senator Carl Levin's statements yesterday during the hearings with Defense Secretary Gates.Senator Levin properly points out that the Iraqi government is spending only about four percent of its multibillion dollar budget on reconstruction; it is hoarding the rest.

Iraqi oil facilities are now producing about 200 million dollars worth of oil every five days.

They are spending none of that money on infrastructure.

Instead, the U.S. continues to spend to build their schools, police stations, etc., plus paying Iraqi citizens "walking around money" to do jobs so they won't hang around street corners and shoot our soldiers.

You state that the "U.S.created this mess".

Oh I see. Under Saddam, and his wonderful sons, the people were free to experience various forms of torture such as being pushed off buildings for the amusement of Uday and Kusay.Women were free to be stoned to death in the street.

Sure, those were the good old days!

Well we did step in. I agree that we did not count on the Iraqis to be so "helpless" in helping themselves once freed, and the old rivalries came to the fore.

We have poured billions into that country to build an infrastructure (not rebuild, since Saddam did not provide the level of public facilities for his people that we are attempting).

It is however, testament to all those politicians, so fearful of leftist wackos' cries of "it's all about oil", that our administration has failed to tally an "oil bill" in oil value equivalents, to pay for the infrastructure money we have spent on this country which stands to be vastly wealthy from its oil.

How about paying back the loan,Iraq? Don't say that we caused the problem and we have to clean it up. You don't want to go back to a Saddam world,you enjoyed being liberated. It is just that you now do not want to pay up.

Sure, now it is all about oil. Even with conservation and alternate energy sources (such as ethanol which is pushing food and fertilizer costs through the roof).,we will need oil for years to come. Why should Iraqis be paying five cents a gallon for gasoline?

I agree with Senator Levin. No more money for building infrastructure.As far as I am concerned, forget about the U.N.,which did nothing except shake its finger at
Saddam for 17 ignored resolutions. We are entitled to value payment in oil for the value we have invested in that country.

It is just that the Iraqis are so lacking in character that they are banking the money and feel no obligation to repay us. As Senator Levin stated, one Iraqi general told our forces that as long as we keep paying for the rebuilding, they will take it.

Senator McCain is right. We may not be in Iraq for one hundred years, but unless we are willing to cede region to those nice regimes in China and Russia, we are going to be hopefully a resident gorilla in the region for many decades.