Is this the start of a deflationary wave?

[errolanderson]

Tom . . . OPEC appears to be slowing oil
movement right now which is supporting
prices temporarily. This has allowed
some ethanol plants to go back on-line.
But the U.S. is about to surpass Saudi
Arabia is the world's largest producer .
. . this is incredible. Now we have fuel
efficient cars. The U.S. may be totally
sufficient in energy by 2020 at this
pace.

In my head . . . how can crude prices
stay up in this type of environment
unless the rest of the world can pull up
the slack? Middle East tensions have
only a short-term bullish impact. Are
the Middle East oil barons in for some
economic hardships in the next decade?

[TOM4CWB]

Errol,

As the world shifts economics to China and India...
they will EASILY take up the consumption US decreases
from middle east. PLUS the US WANTS to keep oil
prices high... to sustain green energy projects.

Japan is a good example of what we are likely to see of
out of the US fiscal system. Deflation is unlikely to be
the outcome... otherwise we would have seen it by
now.

Instead INFLATION is the way forward to decrease the
total percent lost in the 2008 bubble.. and deficits.

[vvalk]

Errol, I think its important to mention
Canola Last week got to the highest price of
the year, at least in S AB at $15

[Burbert]

OPECERS coming ta our rescue? We have a
bitchbubble that can't be burst and
OPECERS are comin ta our rescue (not), eh!

[Rareearth]

Thanks Errol for the post and country guide
article. Always two sides to a story. Heard on the
news Flarity even mention currency war, and he'll
have no part of it. Can you say C $ 1.20.

A national government that won't protect and look
after its citizens because they want to do what's
right. When has that ever happened?

Anyway the risk is likely inflationary, every where
else but Canada. A exporting nation will be able
to import things cheaper, with citizens that can
travel abroad longer and cheaper, thats all. The
country was growing and prospering, gaining
competitiveness when the dollar was at .70 : 1
usd. In 80's and 90's. I guess it's the USA and
Europeans turn.

Who else in the would would take Flatleys
position?

[BTO_farmall]

error,,,,,