Posted on 03/09/2005 10:19:29 AM PST by Jomini
Permitting foreign held treasury obligations to be used as leverage in attacking the dollar in this fashion should be reviewed. The $100 strike price option highlighted above tells you everything you need to know.
J
A large part of the runup in price is due to the weakness of the dollar. I'm wondering if that imminent destroyer of currencies, George Soros, is behind this?
Soros doesn't destroy currencies, he merely profits when government's destroy currencies.
If Americans need Senator's permission to meet our energy needs, then we are already on our knees.
What's behind this is a huge increase in demand without a corresponding increase in supply...coupled with fears that war will interrupt existing production. Soros and others like him are smart enough to profit from the situation...unlike most others who bury their heads in the sand or cry like infants.
Recent cold weather???
We were at 72 degrees the other day...normal average is around 36...OMG!!!Global Warming!!!!!
Nope, back to 34 today...
Been fairly typical to actually a few degrees warmer than usual around here this winter.
I'd bet more on a Soros type influence than the weather.
Prepare to strike Iran in June???!!!
There's plenty of supply. Don't pretend part of the problem isn't the weakening of the dollar. That's whistling past the graveyard.
Who cares about a weak dollar impacting the price of oil when we can still buy cheap t-shirts at Wal-Mart??
< /sarcasm>
Actually, I say watch for signs and get ready to short the sucker. While demand remains high, there is no current disruption to supply. In my experience, when the media and general public start hit their highest pitch about soaring oil prices, they start to fall.
Even worse, get ready for those stupid "reporting live from the gas station" MSM stories.
There was an analyst on CNBC this morning from the Univ of Houston who said we couold probably expect prices to hit $80 a barrel with the price stabilizing at the 50 to 60 range. I wonder how long the American voter will continue to give the enviros a pass on drilling in the gulf and ANWAR? Nukes anyone?
My heating bill demonstrates otherwise.....
SNORT...A barbarous relic.......I certainly don't have any in my safe or locked in a vault in Canada.
Does this mean you have become a supply sider? Read the article again. Oil isn't up in other currencies.
I contracted 1200 gallons last year and won't have used it all by seasons end myself.
but that imbalance does not exist - there is plenty of supply to meet demand, otherwise we would have shortages, and we don't.
its the speculation in the market, the hedge funds, et al, plus the weaker dollar that is driving it.
the administration could flush out the speculation if it wanted to - sell oil from the strategic reserve at $42 per barrel and announce a contract with the new iraqi government to replace it with oil from them at $40 per barrel, the $2 being "war reparations". the world price will drop on the news, the speculators will stop out of all their positions, which will drive the price lower - and eventually, an equilibirum will develop between actual suppliers and consumers of oil, as opposed to those using oil as a financial instrument.
In a world of competitive currency devaluation, it makes sense to use hard assets as a financial instrument.
Its only just begun.
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