tag:blogger.com,1999:blog-859117481492555816.post2521743084336654755..comments2014-08-19T06:32:09.346-07:00Comments on David Korn - The Retirement Advisor Coeditor: Bob Brinker Comments on Oil PricesKirk Lindstromhttp://www.blogger.com/profile/08907286927383718834noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-859117481492555816.post-80067023295856873372008-07-05T09:50:00.000-07:002008-07-05T09:50:00.000-07:00Great points!Oil priced in gold or even pre-1964 c...Great points!<BR/><BR/><I>Oil priced in gold or even pre-1964 coinage is dirt cheap. Oil is not going up-- the dollar is going down, sinking like a rock. Why? The Federal Reserve guarantees a minimum inflation of 2%. That's the floor! If it goes above that, they do not seek to bring it back to that average by running lower than that for a while. Consequently, the smart money factors in that the inflation for the past few years has been at the bottom and has nowhere to go but up.</I><BR/><BR/>I agree and it clearly shows in the price of Gold, oil and top quality real estate that is not going down in price despite the majority of real estate in the US is down a lot.<BR/><BR/>I hope you read <A HREF="http://kirklindstrom.blogspot.com/2008/07/dow-in-secular-bear-market-when-priced.html" REL="nofollow">DOW In Secular Bear Market When Priced in Ounces of Gold</A> and click on the graphs there showing the ratio back to the 1800s.Kirk Lindstromhttps://www.blogger.com/profile/08907286927383718834noreply@blogger.comtag:blogger.com,1999:blog-859117481492555816.post-14242173745895716322008-07-05T09:13:00.000-07:002008-07-05T09:13:00.000-07:00Oil priced in gold or even pre-1964 coinage is dir...Oil priced in gold or even pre-1964 coinage is dirt cheap. Oil is not going up-- the dollar is going down, sinking like a rock. Why? The Federal Reserve guarantees a minimum inflation of 2%. That's the floor! If it goes above that, they do not seek to bring it back to that average by running lower than that for a while. Consequently, the smart money factors in that the inflation for the past few years has been at the bottom and has nowhere to go but up. <BR/><BR/>Further, the Fed uses a warped measuring stick to determine this inflation, looking at "core" inflation. Rampant inflation in food and energy does not register on the measuring stick, but it does to those of us who eat and drive. The federal government was given few responsibilities, but maintaining the value of the currency is one of them. They have been a dismal failure.<BR/><BR/>GM stock reaching a new low is bad until you realize that the dollar 50 years ago was worth 20 times what it is today. That $11 price is really 50 cents. Who would have imagined? Why did it happen? The management promised money that future managers would have to earn, and the unions took benefits that future GM would have to pay. The union bosses and management of the time both looked good, but now those chickens have come home to roost. Of course the managers and union bosses who made these agreements are long gone and we're here to clean up the mess. They did not consider competition would make those agreements so untenable. They figured their oligopoly would be able to demand ever higher prices from their customers, just like the politicians figure they can demand ever higher taxes from the public. They were both wrong.Anonymousnoreply@blogger.com