Sunday, February 27, 2011

US Dollar Collapse: Lithium, Rare Earths, Gold and Silver: Mary Meeker's USA Inc. Debt Bible tnr.v, lmr.v, rm.v, alk.ax, nup.ax, ng.to, laq.v, bvg.c, bva.v, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, fvi.to, mxr.v, sgc.v, ktn.v, epz.v, cuu.v, mgn, nem, fcx, bvn, auy, abx,

  One picture could be better than thousand words about it,

 but we all need further conviction and now we have it.


If you would like to know why did it happen and who have benefited from it:


"Jim Puplava is brilliant with his new Financial Sense podcast "Inside Job". If you are still wondering why it all happen you should address the Federal Reserve Private Bank status - it is correct Federal Reserve is as federal as Federal Express. Now you can guess who gained already from the explosion in U.S. Debt and who will benefit more when the FED rates will move up following the market rates. Listen to this podcast and spread the word."

What will be next and how to survive?


"All those QE exercises, which we have discussed above, will unleash a very powerful force of Inflation all around the world. The new most powerful trend in 21st century will be the Energy or lack of it to drive the world and its population forward. All recent progress is based on relatively cheap energy available to us for the last one hundred years. The chart above is from the latest groundbreaking revelations of International Energy Agency - it shows to us that we do not have that luxury any more. Cheap oil is gone - according to the IEA - and "Crude Oil: fields yet to be found - is the politically correct way of saying Oil Shortage. We have now Population Growth multiplied by Peak Oil and Inflation, which will push all prices higher."

  Our Catalyst observations on markets were published just a few short months ago, but reality which  is unfolding now is even more dramatic and explosive than we have envisioned before. We do not know what people will do when they will realize that they were used and dumped and, maybe, there is no way out any more. One thing is unions striking for bargaining powers and another is hungry mob on the streets and Fuel Riots. There will be attempts to "use the scalpel" and cut some expenses, but we can be almost sure that QE n+1 is coming next.


"We have been proudly running Gold Bull for nearly ten years now: Gold first, than Majors and follow up on Junior side. We were always wondering about Future of Energy and have collected some great memories on Uranium Run, Solar and Water plays. Gold Bull has years to run, but we are searching constantly for new Macro trends - it is very interesting to find out what will be the next Bull which will come out of these rubbles in case we are right and Inflation will be the answer to the Deflation war scenario. It is time for Lithium to come into picture.
  Lithium is the leveraged play on Peak Oil and rising Oil price with coming Inflation. Sector is very small and market is even more smaller - everything is ready for the parabolic move in case of supporting fundamentals.
  Recent Oil Spill shows the real price for Oil and leaves no doubt for us that there will be no more cheap oil: offshore drilling is costly now, it will be even more costly later. Relatively cheap Oil is in the hands of state owned companies in not so friendly to U.S. places. Oil squeeze will come from diminishing production rates and rising Inflation. The move will be even more explosive than in the Gold market - in the end only minority of people is effected by the gold price even now, Oil is the underlining of all Western Energy Diet. It is not sustainable. Emerging markets are taking more and more share of world wide production, oil producing countries are spending more at home. If you account all cost to produce, deliver and protect Oil supply to U.S. corp the price is already above 150 USD/barrel."







"This year we have a staggering number of reports and warning on the looming Peak Oil situation. It takes time for reality to settle in, particularly,when nobody knows what to do with it. We have put REE in the headline and only few months ago we would have to explain, what is it all about - now suddenly everybody is talking about REE and stocks involved in Rare Earths are all making new highs. It takes a crisis for us to realise that fundamentals are driving the real trends. Sudden realisation that China controls more than 90% of REE market and their reserves maybe will last only for another twenty years, created the catalyst in the market place. What will it take to realise that we are running out of cheap oil? Another crisis?
  We are talking here about the powerful mega trend Inflation multiplied by Peak Oil situation - we have to move and readjust our society. Our Energy diet is not sustainable any more. We are lucky in a sense that there is technology available to us to survive the Oil Shock if we will all move fast - Electric Cars. It is our Next Big Thing and at the heart of this disruptive technology lie strategic commodities: REE and Lithium."



Enhanced by Zemanta
Post a Comment