Yes, this means “Peak Oil”, and all of its myriad consequences, is real and will dominate every aspect of your life FROM NOW ON.

But first, our quote of the day:

"Blaming the speculators is a lazy explanation. There is a genuine problem here," says Paul Horsnell, the head of commodities research at Barclays Capital.

And our other quote of the day:


“Eventually, all currencies (except gold) go to zero. The only difference is the speed at which they get there. Warranted or not on relative merits, the U.S. dollar is winning the race among major currency pairs.” – Michael “Mish” Shedlock

Or as a famous mob hit man was reported to have remarked just prior to sitting in New York State’s electric chair, “I never killed nobody who wasn’t gonna die anyway”.

I never thought of it that way, but ALL currencies eventually go to zero, and the U.S. Dollar is no exception. It is just that the denial and unrepentant mismanagement of our currency by the powers that be staggers the mind. I don’t have to point out that the price of crude oil keeps setting new records, and is just 2 bucks from the magical “$100”. It is, and if you have been reading my stuff for a while and held cash instead of energy and precious metal plays, you might feel a little sheepish… AND YOU SHOULD. Now get over it! Why would you prefer to own U.S. Dollars instead of a diversified portfolio of energy equities and commodities? Would you short the energy sector and go long the U.S. Dollar? Well that is exactly what you are doing.

You have little time to take action. After that its “woulda, coulda, shoulda”.

Let me repeat that which I have been ranting about for several years now: Oil is $98, a new record. The U.S. $ has broken below 76 on the dollar index, a new record. Gold is $835… This is not a coincidence!


Mentatt (at) yahoo (dot) com