Thoughts from Wild Oats

[Zaphod]

I'm not so sure. When the economy goes splat (and we agree that it will), who will be able to pay $150 or $200 for crude? Unless we all have wheelbarrows full of greenbacks like you suggest. Even so, pil stated it won't have any more purchasing power. So will it really matter? Is gold the only escape then?

[Zaphod]

The US dollar has puked 5 cents in May. Crude oil has gone up what, $8? Is that the best it can do? Hardly a screaming rally.

[pilpilsner]

Crude is up over 30 percent in atime frame measured in weeks

I need to grow a sharp pointy thumb nail to help me time on my blackberry

[parsley]

Crude will soon start pumping out agian.

[wd9]

Interesting tho is how the price of oil affected transportation, but the true effects were not realized because of the crash. Making iron in china is a good example. I believe it costs around 52 bucks to smelt iron in North america and the cost to transport a tonne of ore from Brazil to china who wanted to ship the iron here cost 65 to 70.

So what you say. Seems it is more cost effective to smelt in our own back yard with the plant here. Cheap oil distorts everything so in the end a true costing of the energy makes mills and plants more economical right here. Will affect things like food too where we have grown used to eating an avacado and blueberries in winter.

Will we see the return of manufacturing and processing back in our country with the true of transportation realized?

[wd9]

Damn... The true cost of transportation.

[cottonpicken]

http://www.usatoday.com/news/washington/2009-05-28-debt_N.htm

[gustgd]

h/t Brad

http://seekingalpha.com/article/139484-the-agriculture-re-boom-is-coming

[Zaphod]

Sounds like someone is talking up their position (maybe trying to sell their fund?). The only problem is that Saudi Arabia (OPEC) did cut back on their oil production, and the slide just kept on going. The whole economy is way more precarious now than it was last year. A big spike in prices will just cause the whole thing to collapse on itself again. It can't be sustained in real terms. In inflated dollars, certainly. But is anyone further ahead? No.

[Fransisco]

Funny, to read this stuff while canola is tanking. You guys may very well be right but for now the canola chart is pointing in the other direction.