Crude Oil and Presidential Intervention?
Thomas J. Benthall
tbenthal at SCHOOLLINK.NET
Fri Oct 13 11:08:16 MDT 2000
On 13 Oct 2000, at 8:30, Gary Freitag wrote:
> rum.runner at juno.com writes:
> >If the price of crude oil should reach $40 or more for each barrel,
> >should the President freeze retail gasoline prices if the major oil
> >companies pass on the increased price of crude oil to the consumer.
> That would certainly make matters worse. The time to make strategic moves
> to keep the cost of energy stable and reasonable has passed. I am afraid
> we are going to start seeing the oil situation reflected in other areas of
> the economy through belt tightening, fear, and possible recession.
I think that we will see $50+ for oil.
The dollar is the oil currency. Iraq no longer acepts dollars for their oil. To them, the Euro is the
oil currency. There is, at present, talk among the market traders that OPEC is now considering
accepting only euros for their oil. If this should happen, look for a sharp decline in the value of
the dollar, which will make the price of crude, in dollar terms, rise even further.
If this should happen, and I think there is at least a fairly good chance of it, look for repatriation
of the foreign money that is now in the US equity markets. Foreign money is one of the main
engines that has driven the stock bubble, and also the MAIN reason that inflation in the US has
been held down. Foreigners liquidating their dollar denominated assets will very likely cause a
market break of at least 50%. The US stock markes ARE the US economy.
Now, I ask the Bush supporters. Who do you want to see in the White House if this should
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