Gregor provides outstanding analysis of the sources and markets for energy and conveys that analysis in short and simple articles.
As always, click the chart for the entire work.
And we're paying the Saudis and Hugo Chavez mas o menos a hundred bucks a barrel because?
As opposed to opinion dressed as news most everywhere.
Yes of course, the picture ... click on it.
India to pay gold instead of dollars for Iranian oil.
Oil and gold markets stunned.
India is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, DEBKAfile's intelligence and Iranian sources report exclusively. Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran's total exports of 2.5 million bpd. Both are superpowers in terms of gold assets.
By trading in gold, New Delhi and Beijing enable Tehran to bypass the upcoming freeze on its central bank's assets and the oil embargo which the European Union's foreign ministers agreed to impose Monday, Jan. 23. The EU currently buys around 20 percent of Iran's oil exports.
The vast sums involved in these transactions are expected, furthermore, to boost the price of gold and depress the value of the dollar on world markets.
You should be listening to your Uncle Roany here ..... buy gold!!!!!
Click the chart for a very simple analysis of the numbers.
Blue is the total trade deficit.
Red is the trade deficit minus petrolium.
Black is petrolium.
Click on the chart to link to the analysis that comes with it.
Having sent this through to my faithful sidekick Garth, he came up with the following article:
Good stuff and pretty easy reading, recommended.
The Guidotti-Greenspan Rule
Named for Pablo Guidotti, former deputy minister of finance for Argentina (that bastion of resposibility in national financing), and Alan Greenspan, increasingly discredited former chairman of the Federal Reserve Board of the United States (that other bastion of responsibility in national financing)
States that a countries financial reserves should equal short-term external debt (one-year or less maturity), implying a ratio of reserves-to-short term debt of 1.
The rationale here, is that countries should have enough reserves to resist a massive withdrawal of short term foreign capital.
The U.S. holds gold, oil, and foreign currencies in reserve.
The U.S. has 8,133.5 metric tonnes of gold (supposedly, ain't nobody counted it in generations).
It is the world's largest holder (supposedly, ..... ).
That's 16,267,000 pounds (at the risk of redundancy ....... ).
At about $1,100 per oz. or $17,600 per pound, it's worth just under $300 billion (you know ..... ).
The U.S. strategic petroleum reserve shows a current total position of 725 million barrels of oil.
At about $80 per barrel, that's roughly $58 billion.
And according to the IMF, the U.S. has $136 billion in foreign currency reserves.
So altogether... that's around $500 billion of reserves.
Now, consider this .............
Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt.
That's not counting any additional deficit spending, maybe another $1.5 trillion ..... ish.
Add it up and you get $3.5 trillion ..... or so, a trillion here a trillion there, pretty soon you're talking about real money.
That would be about 30% of our entire GDP.
Where do you think that money is gonna come from?
They're gonna print it.
Or snatch your IRA.
If not both.
The above was taken almost in it's entirety (with the exception of the bitter and/or sarcastic comments usually written with type just about this big) from a Porter Stansbury article that was all over the place most of this past fall.
Taken from China Daily 1/28/2010
“China Investment Corp. increased spending on energy and minerals assets last year to profit as the global economy recovers. The Beijing-based fund avoided the worst of the credit crunch in its first full year in 2008 and may have had a return of more than 10 percent in 2009, said London-based Jan Randolph, director of sovereign risk, analysis and forecasting at IHS Global Insight. ‘They have timed the upside well both in market terms, but also to fit in with the longer-term diversification strategy,’
“CIC has had ‘early’ talks for direct investments in
Taken from the fine site, "Seeking Alpha".
Click anywhere within the body of the paragraph for the complete article.
Another site that I highly recommend for grownup reading.
Steven Gross, the Chief Actuary of the Social Security Trust fund wrote a letter* on 9/15/2008. In that letter he included this graph.
On 2/12/2009 Mr. Gross wrote a letter* to Senator Robert Bennet. That letter contained this graph.