Thursday, October 25, 2007

$91 Oil, $772 Gold


HONG KONG (MarketWatch) -- Asian commodity stocks rose early Friday as crude oil and metals prices continued to rally, lifting shares of resource firms such as BHP Billiton and Rio Tinto in Sydney, Inpex Holdings in Tokyo and Cnooc in Hong Kong.

Crude oil for December futures rose as high as $91.10 a barrel in electronic trading, after ending at a record high of $90.46 a barrel on the New York Mercantile Exchange. The contract was recently at $90.77 a barrel, up 31 cents on continued worries over energy supply and tensions in the Middle East.


Gold prices advanced $2.55 to $772.10 an ounce, as weakness in the dollar and rally crude-oil prices boosted demand for the precious metal.

But inflation is tame because the government says it's tame...stripped of food and energy costs, of course!

What a scam.

The all-time high for oil, adjusted for inflation, is about $101 bucks a barrel.

We are now officially ten bucks away from that all-time high, which we hit back in the 70's.

You remember the 70's - when we had high inflation, low growth and lots of unemployment.

Since those good old days, the government has changed the way they calculate inflation and employment stats, so now we have low inflation (even w/ $91 oil and $772 gold) and low unemployment (they stopped calculating people who are out of work long-term as unemployed and add a 100,00 to the stats every month as part of the birth/death model.)

So believe the government when they tell you that this is the bestest economy ever.

They never lie or distort the stats.

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