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Author: [Politics] Topic: US Domestic Drilling vs. Price of Gas
14daroad send a private message View Space | Blog | Friends | Playbook |
14daroad
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#26
Posted: 3/22/2012 1:58:21 PM

So I guess the conclusion from this article is that the US should not seek to increase the supply of oil?

Or the conclusion is what _____ exactly?

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OakleyDoak
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#27
Posted: 3/22/2012 2:18:07 PM

Interesting and informative.

Are dichotomies in opinion just steeped in philosophy,or actual fundamental market laws / rules ?

I love the array of different beliefs we get here in the forum !

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KOAJ send a private message View Space | Blog | Friends | Playbook |
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#28
Posted: 3/22/2012 2:23:36 PM
QUOTE Originally Posted by wallstreetcappers:



I think you know the answer to that question. A flood of currency dollars does nothing unless it is used.

Sometimes I wonder if you hold onto logic just to make an argument.

I dont recall you mentioning going long leveraged commodities, you have always been long the inverse 10 yr..but if you did that, congrats.

And to answer the question, are you using 10-20-30-50 to 1 leverage and moving the markets on your little trade? I dont think so.


money will go to something to hold its value/purchasing power, like commodities or the stock market to beat inflation

we're actually very lucky that we are in a depression or we would have rampant inflation

i did some double long like the DXO but i only held for a little while. very little positions right now. just focusing on building revenue streams and income instead of trying to beat inflation or save. figure paying down a 4% loan is better than saving at 0.5%
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#29
Posted: 3/22/2012 3:42:49 PM
QUOTE Originally Posted by KOAJ:



money will go to something to hold its value/purchasing power, like commodities or the stock market to beat inflation

we're actually very lucky that we are in a depression or we would have rampant inflation

i did some double long like the DXO but i only held for a little while. very little positions right now. just focusing on building revenue streams and income instead of trying to beat inflation or save. figure paying down a 4% loan is better than saving at 0.5%

That 4% loan is pre-tax, with your bracket it would mean a real rate after benefit of taxes and interest of closer to 3%. In the short term that seems like the right choice, but longer term and especially if you feel as you did long ago that inflation is coming, you will want to milk that 3% as long as you can..build savings and when rates ever do go up you will make more saving/investing than the rate of interest on the property.

The truth is if I have a house full of USD and I dont use it, the money is not being circulated and the multiplier effect is gone. Given the soft loan market and the soft economy in general I really do not think your view of the results are accurate. Then when you compare to other currencies, the net effect is even lower.

Commodities are not running due to inflation or money supply, they are running due to speculation and anticipation. That is based on greed and perception..which if wrong we saw what happened in 2008. 

I think you are drawing conclusions based on historical results, and that in this case is erroneous.
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#30
Posted: 3/22/2012 5:16:12 PM
QUOTE Originally Posted by wallstreetcappers:

Its a control of supply issue.

Until OPEC is taken apart or we control 90% of domestic supply, AND remove speculators from the commodities arena, pricing will continue to be removed from the supply and demand curve.





There are those on this forum that cannot grasp supply and demand...


Please stop talking over their heads...

Obama is to blame for everything...
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rick3117 send a private message View Space | Blog | Friends | Playbook |
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#31
Posted: 3/22/2012 5:38:22 PM
QUOTE Originally Posted by wallstreetcappers:



Bingo..

The logic of excess supply of USD equating to a falling currency is flawed. The currency rate is relative to another. I dont know how that elementary concept is so often lost.

You said it, but the difference is that the inflation that is reported is a joke.  Oil, Gold, food, etc. The prices at market do not jive with the 3% or lower rate of inflation.  


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