An informal interview with Bloomberg
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Very funny, that last comment, Al. Scared the interviewer away!
Regarding the reasons for higher oil prices, you left out money printing. The peak oil guys do the same all the time. Interestingly, the price of oil, when measured in gold, is slightly lower today than it was 20 years ago. The real price today is actually lower than it was throughout the 1950’s and ’60’s. It takes .05-.06 ounces/barrel today. It took .08-.09 ounces/barrel in the ’50’s and ’60’s. If peak oil is really an imminent problem, oil should be rising in terms of real money – gold! But I digress.
Bottom line, money printing will always push the prices of finite resources higher than they would otherwise have been if price discovery were left to market forces.
Yep, Matthew I agree with you.
And, that is why gold and silver to me make a whole bunch of sense. (But that is obvious by now!)
Big Al
We follow and approve of our friend John Williams’ work. He is tops on the stats. Saw and referred the Alf Field essay today and printed it and read it. His tech work is similar to mine but different. We pretty much end up with the same answers however. He did a very nice report. Energy and food much higher in 2012 on newer and faster inflation. Inflation today in the USA 11% and rising. In China 15% and going faster. Hong Kong real estate imploded at 35% inflation. Tenants are leaving their buildings as some rents are -get this $150,000 per month for a modest store. WOW ! – Traderrog
I mentioned the other day, but it’s worth tagging onto Roger’s comment. Take the time to read John Williams’ primers on his website, which are open to non-subscribers. They’re very interesting in their own right, but also demonstrate John’s unique background for doing what he does. He is not shooting from the hip with his stats.
Your last stat on Hong Kong RE is stunning, Rog. All bubbles end the same way, but those involved never see them coming…the run-up is just too good to admit what’s really happening. I think China’s government knows, but they don’t know what to do about it….seeing a bubble collapse in a controlled economy is an experiment I’ve been waiting to see the outcome too…probably the same as in an uncontrolled economy.
Al: Good job explaining to the Downstream Media the reality of what is is. You and your people at Kerport.com are becoming one of the Main Stream financial networks. My only hope is, this does not go to your head and for you I doubt it will.
If you get time, listen to John Williams interview on Financial Sense. and read Alf Fields report, especially his “Moses Principle”. You were talking to a young man just now who is coming out of a Paradise and is now entering a Desert.
http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/11/15/john-williams/third-quarter-gdp-numbers-have-no-relation-to-reality
http://www.jsmineset.com/2011/11/14/keynote-speech-at-sydney-gold-symposium-14-15-november-2011-by-alf-field/