[chrispi]

If you look at the graph, you will see three distinct peaks: before 9/11, during Hurricane Katrina, and now.

Check out the Dow:Gold graph. Maybe ol' Kunstler would have been right about his prediction of Dow 4000 were it not for dollar/dinar rot.

Dow/Gold Ratio

[Micki]

$this->bbcode_second_pass_quote('', 'H')ere is some supporting evidence that the recent run-up of gas prices is due not to PO, but the falling USD (a.k.a. the Yankoslavian Dinar):

[chrispi]

$this->bbcode_second_pass_quote('Micki', '
')Why can't it be both?
Oil did go up in most currencies, not just US$, so it wasn't just a dollar phenomenon.

[3aidlillahi]

If you go back further, you realize that we have a general downward trend. We're currently at $918 gold and $120 oil. That's 7.65. That's pretty much the lowest point it's ever been. Gold is becoming relatively cheap compared to oil as oil is consumed while gold is stored.

Silver and gold are great investments, but I'd rather have a contract for 1000 barrels of oil than 100 oz. of gold long-term.

[chrispi]

Honestly, I don't see the downward trend within the noise of spikes and troughs in the chart. Again, if you look at the gold/oil chart, its troughs are below 10:1 but above 5:1, and have been since 1975! This is not the behavior we'd expect from PO, which would give a net decreasing (gold/oil) or net increasing (oil/gold) chart.

I'm not saying that PO can't happen in the near future, just that its economic foreshocks have not happened yet. What we see is just as troubling as PO, however: precursors to hyperinflation in the USA.

[3aidlillahi]

$this->bbcode_second_pass_quote('chrispi', 'H')onestly, I don't see the downward trend within the noise of spikes and troughs in the chart. Again, if you look at the gold/oil chart, its troughs are below 10:1 but above 5:1, and have been since 1975! This is not the behavior we'd expect from PO, which would give a net decreasing (gold/oil) or net increasing (oil/gold) chart.

I'm not saying that PO can't happen in the near future, just that its economic foreshocks have not happened yet. What we see is just as troubling as PO, however: precursors to hyperinflation in the USA.

[Twilight]

Some historical ratios may become meaningless. Some doubtless have in the past. One can easily compare the historical prices of two items, but it is more difficult to say where they are supposed to be once things start changing.

[eastbay]

$this->bbcode_second_pass_quote('Twilight', 'S')ome historical ratios may become meaningless. Some doubtless have in the past. One can easily compare the historical prices of two items, but it is more difficult to say where they are supposed to be once things start changing.

[chrispi]

$this->bbcode_second_pass_quote('eastbay', '')$this->bbcode_second_pass_quote('Twilight', 'S')ome historical ratios may become meaningless. Some doubtless have in the past. One can easily compare the historical prices of two items, but it is more difficult to say where they are supposed to be once things start changing.

[Micki]

$this->bbcode_second_pass_quote('eastbay', '')$this->bbcode_second_pass_quote('Twilight', 'S')ome historical ratios may become meaningless. Some doubtless have in the past. One can easily compare the historical prices of two items, but it is more difficult to say where they are supposed to be once things start changing.

[3aidlillahi]

$this->bbcode_second_pass_quote('', ' ')ridicelously

[Micki]

3aidlillahi, dont be ridicleous. I just didnt run spelshecker. I am not a naitive English speeker you now.

[3aidlillahi]

$this->bbcode_second_pass_quote('Micki', '3')aidlillahi, dont be ridicleous. I just didnt run spelshecker. I am not a naitive English speeker you now.

[eastbay]

$this->bbcode_second_pass_quote('chrispi', '')$this->bbcode_second_pass_quote('eastbay', '')$this->bbcode_second_pass_quote('Twilight', 'S')ome historical ratios may become meaningless. Some doubtless have in the past. One can easily compare the historical prices of two items, but it is more difficult to say where they are supposed to be once things start changing.

[MrBill]

I guess when oil gets too expensive I will switch to running my car and heating my home with gold. Thanks for the advice! ; - ))

[sparky]

.
The only gold passed back an forth is the one in central banks reserves , I wonder if there has been some underground trading

Actually a fair bit of gold is destroyed in various industries such as electronics and decoration also in personal and apparel use.

there also is the fact that it take a lot of energy and oil to extract refine and transform gold ,there also is more and more people who are customers so the low price of gold is a bit of a kirk in the market

.... maybe traders are just plain dumb

[barbara23]

Hi guys, long time no see this forum Barbie reporting again.

Commodities fell after news that hurricane Gustav was not that destructive. Hence, the high oil prices reached crashed down. Crude-oil futures for October fell $5.75, or 5 percent, to $109.71 a barrel.

Gold slipped the most in three weeks yesterday with plunge in energy costs and a strengthened dollar, reducing the metal's importance as an alternate investment. Golf fell to $803.20/$804.20 an ounce late in New York on Tuesday.

Cheers!
Barbie

{link removed by Shannymara per CoC 3.1.7}

[barbara23]

Hi traders! Our favorite commodities are bouncing just like a basketball ball.

Oil declined on Friday despite falling inventories, as dollar gained against the euro. Crude oil for October delivery fell $1.46 to settle at $107.89.

Dollar's decline gave gold the much needed boost. Spot gold ended gains into a second session to stand at $804.70 per ounce by 1021 GMT, up 0.45 percent from $801.10 in late New York trade on Friday.

Cheers!

Barbie

{link removed by Shannymara per CoC 3.1.7}

[firestarter]

Say what?

We just added $5 tril plus to the nation's balance sheet.

Oil is basically flat. The dollar is up big today. Treasuries caught an unlikely bid. Stocks are to the moon.

When you shake it all out what do you get? DEFLATION!

[FreedomSlave]

RE: F & F takeover:

So what happens if, say, 10-25% of mortgagees default and are foresclosed upon by F & F? (Default is currently 9.2%). http://cryptogon.com/?p=3934

Does that mean our government will then hold title to those properties following foreclosure and then be able to dispose of the properties (to bank cronies, etc.) or otherwise transfer them into private hands through distressed selling? Obviously this would deflate surrounding property values further, and snow-ball the existing problems further in time and degree.

Sounds like another advance for our bankster overlords toward either neo-feudalism or "socialism" (if the properties remain under government ownership). Choose your party accordingly, the real powers remain in control.

Isn't this really the biggest transfer (read: theft) of wealth in history?