On this about oil. Not sure who it was but they posted a world calculator link and scanning through it, it had the oil left in the world in days, dividing it by 365 (a year ) worked out to oil lasting ~ 40 years. Did I calculate this wrong? And wtf does that mean for the world??? or is the calculation off... http://www.worldometers.info/
I dont think energy will be an issue medium term, however short term it may be. Once the US Oil and Gas export industry comes on line to meet capacity, energy prices will most certainly come down. Source:
But in the now (i.e this year and next) oil prices are a contraint to growth... The major economies will be like a plane, taking off without enough power... just rolling over and nose diving
+1 To that. However bringing the oil to market once you realise its' under the ground takes a long time. ~7 years from test drilling to production at a site is the norm, if I recall correctly. That includes acquiring the right finance, legal/environmental approvals, and building all the infrastructure to support production. Given all the legislative constraints by Obama to new drill sites in the Gulf of Mexico, and environmental activist agitation over the Canadian oil sands and pipelines, that adds years to projects, today.
Remember Lehman Brothers in 2008? When was it again that their AAA rating was lowered? I did start buying silver. Simply because for the first time since september 2012, people are now selling to me at the same bids I placed all that time.
A big downturn makes the paperclub exit the paper represented silver.. Why would the consequential lower price not cause a real demand that compensates for it, in other words, weakening, or even reversing the price drop? It doesnt need more printing. More printing isnt even needed. 80% of the past printing is still not spent. So why more printing? To lure people into paying again higher prices? I won't be amongst those. Instead, I target a price that has some nonpaper support. A good example is that 10 years recordlow Comex position of summer 2012. Despite that recordlow, the price still didnt underceed $26. Why? Because the real demand compensated for their dumping. Why would this not happen, once again? I do have some confidence in the silver market. More than I have in the euro market.
Unless they face a sudden sharp rise in production cost. Due to higher tax, higher price inflation, more regulation, and so on. All it needs, is a seemingly revival of economy. Then this will kick in. Unless of course they manage to produce more at the same cost. Bigger machines. Less personell. Harder working. More efficiency. Marsians that come help for free. Etc.
