will bhp stay above 25, page-37

Amazing how the universe as we know it can change in months.

In July when oil was peaking at $147, we had all the doomsdayers coming out talking about peak oil. That demand especially by China was oustripping supply. That by Christmas it would hit $200.

And every crude or petrol inventory report in the USA sent nervous tremours through the Dow.

Yet output all the while suggested there was no demand increase----just a massive speculative bubble. The hedge funds had hijacked the price and traded it and re-traded and re-traded it.

By the time a tanker of oil loaded in Saudi Arabia and arrived at its destination, its load had been bought and sold a dozen times.

Then we had the doomsayers arguing of a massive hyperinflation in the USA especially, which was going to sink the economy.

And the Fed's hands were tied--- it could not give an economic stimulus by cutting interest rates, because to do so would aggravate inflation.

Well, here we are now, oil in the low $60's, the Fed cutting rates, and inflation, for now at least, the....least of our problems.

Each cycle brings out the high priests, appealing to the fear of the masses, using prevailing conditions which appear to to bring plausibility to their absurd arguments.

In three months the world may yet again be a changed place, with a new set of priorities, a new set of argumens, and a new lot of high priests seeking converts.

:))))