Bought another bike.......

[Molinoman]

And to think that 3 weeks or a month ago gas was being forecast to be around $2.50 or so in the spring. What happened???? (I know, but it just changes on anything that can be used for an excuse).

I'm not surprised Bush doesn't know that gas has gone up, when do you think was the last time he showed up at a gas pump to pump his own?

Dennis

 

[Ugarte]

You FOOL Flip. WTF did you go and get an 08 KLR 650 for? Have you lost your f**king mind?

Jusk kidding of course and congrats! Got 4500 miles on mine and very much liking it after that scary first week. The little peckerhead grows on you after a while and it is far more capable off road than I am. A lot of bike for $5200.

 

[wilbur-t]

Congrats, flip. Now no more complaining about 6" of mud!!

 

[sullyjones]

Well, with gas prices heading for 4 bucks plus a gallon

Fuel heading towards 10 dollars per gallon in uk

 

[Jamie]

SO WHAT? ... 101-some US$ a barrel. But the US$ is going the other way, i.e. tanking. Minus 15% vis-a- vis the € in a year's time. Minus 17 or 18% vis-a-vis the Swissy (we're heading for an incredible 1-to-1 US$/CHF parity... ).

Minus 40% vis-a-vis the € over the last 5 years (check Bloomberg, if you don't believe me)

So in terms of non-$-denominated buying power, oil producers are only collecting $60-some bucks worth of constant value per barrel.

And they are increasingly feeling short-changed. If you watch CNBC tonite, it will tell you that the OPEC producers are actually contemplating a production cut.

Which, if they manage to get consensual about it, is gonna do three things: 1) Generate self-righteous animosity towards oil producing countries, 2) Cause the barrel to hit the $105 so-called "psychological" mark and 3) Precipitate, almost automatically, a further US$ erosion.

Simplistic? Maybe. But you first read it on THIS forum

Jamie

 

[Pig9r]

And as you know Jamie, during times of economic uncertainty (i.e., now) people tend to withdraw their money from stocks and invest in commodities such as precious metals, soybeans, corn and oil. And we are seeing the highest prices in history on all of those. If they (Saudi Arabia and UAE) stop trading oil in the US dollar, the US economy would be crippled.

 

[busajack]

And as you know Jamie, during times of economic uncertainty (i.e., now) people tend to withdraw their money from stocks and invest in commodities such as precious metals, soybeans, corn and oil. And we are seeing the highest prices in history on all of those. If they (Saudi Arabia and UAE) stop trading oil in the US dollar, the US economy would be crippled.

--Your right Piggy,I took all my stock money and put It in food so even if I cant ride I can eat..BJC

 

[Jamie]

And virtually all those commodities are traded in US$ . Just like oil. Highest prices in history... but expressed at the lowest US$ value in history. Look at the gold (an extreme example, granted, and the most dormant investment, admittedly ) $-denominated index currenty @ 972. You might retort that that index has gained over 40% over the last 12 months, as opposed to the $ offset percentages I cited in my earlier post. Which it has, i.e. gained over 40%, as opposed to a mere 15% . So is my logic flawed?

Not at all. Lots of investors (not only Arab Cheiks) want MORE than a mere $ depreciation offset, and gold and metals, by default, lend themselves to that.

BTW, I am afraid the US currency, if not the US economy as a whole, IS crippled. Jamie

 

[Sidecar Flip]

You FOOL Flip. WTF did you go and get an 08 KLR 650 for? Have you lost your f**king mind?

Jusk kidding of course and congrats! Got 4500 miles on mine and very much liking it after that scary first week. The little peckerhead grows on you after a while and it is far more capable off road than I am. A lot of bike for $5200.

Ugarte:
It's a lot of bike for $5200 bucks in today's economy but in the economy of the 60's (when I bought my first bike), 5200 bucks could have bought me a new '67 Shelby Mustang 500KR fastback ($3500.00) or a new '66 Corvette 427/390 Stingray Convertible ($3200.00) or a couple '68 Triumph T120 Bonnevilles ($1320.00 each). You are right, it is a lot of bike for today's worthless FRN's.

Congrats, flip. Now no more complaining about 6" of mud!!

As I type this, the 6" of mud has turned to 5" of mud topped with 1" of frozen brown goo that's slicker than cat **** on a linoleum floor.

And virtually all those commodities are traded in US$ . Just like oil. Highest prices in history... but expressed at the lowest US$ value in history. Look at the gold (an extreme example, granted, and the most dormant investment, admittedly ) $-denominated index currenty @ 972. You might retort that that index has gained over 40% over the last 12 months, as opposed to the $ offset percentages I cited in my earlier post. Which it has, i.e. gained over 40%, as opposed to a mere 15% . So is my logic flawed?

Not at all. Lots of investors (not only Arab Cheiks) want MORE than a mere $ depreciation offset, and gold and metals, by default, lend themselves to that.

BTW, I am afraid the US currency, if not the US economy as a whole, IS crippled. Jamie

Lets beckon in the era of the Amero along with free trade between Mexico and Canada....That road that's being built between Canada and Mexico, you know, the one that goes right through Kansas City, has a set of pipelines in the median.....wonder what the pipes are for?

Not too long ago, didn't the Federal Reserve Corporation admit that the real cause of the 'Great Depression' wasn't the fall of the banks but rather the heavy handed manipulation of the Federal Reserve themselves? It's a great thing to live in a country where a private corporation, owned by bankers, prints and distributes the legal tender that the whole deck of cards is built upon.......

 

[Pig9r]

And virtually all those commodities are traded in US$ . Just like oil. Highest prices in history... but expressed at the lowest US$ value in history. Look at the gold (an extreme example, granted, and the most dormant investment, admittedly ) $-denominated index currently @ 972. You might retort that that index has gained over 40% over the last 12 months, as opposed to the $ offset percentages I cited in my earlier post. Which it has, i.e. gained over 40%, as opposed to a mere 15% . So is my logic flawed?

Not at all. Lots of investors (not only Arab Cheiks) want MORE than a mere $ depreciation offset, and gold and metals, by default, lend themselves to that.

BTW, I am afraid the US currency, if not the US economy as a whole, IS crippled. Jamie

There are a number of events occurring that have devastated the value of the dollar, the US budget in red, war, no faith in the current administration, trade deficit, low interest rates, the stock market tanking, the sub prime lending crisis, large manufacturers reporting losses, natural disasters (Katrina etc).

The chair of the federal reserve wants to help bail out the banks that have lost their asses with all of the foreclosures of the sub prime mortgages, I think he thinks it will give a sense of security to foreign investors. I think you need to let it run its course, and let the market adjust accordingly. It will really suck for a while but be healthier in the long run. That is the way nature intended, survival of the fittest. A large portion of our goods come from China, fortunately for the US, China's currency is tied closely to the dollar, so that will help inflation some what.

And Flip your purchase just increased the trade deficit.