Replies to post #2852 on Value Microcaps Junior Energy

[kipp440]

Jang-A-Lang

It hits home doesn't it.


http://seekingalpha.com/article/78439-a-run-on-central-banks?source=side_bar_editors_picks

Kipp

[roguedolphin]

"By 1990 the value of the weapons, equipment and factories devoted to the Department of Defense was 83% of the value of all plants and equipment in U.S. manufacturing. From 1947 to 1990, the combined U.S. military budgets amounted to $8.7 trillion. Even though the Soviet Union no longer exists, U.S. reliance on military Keynesianism has, if anything, ratcheted up, thanks to the massive vested interests that have become entrenched around the military establishment. Over time, a commitment to both guns and butter has proven an unstable configuration. Military industries crowd out the civilian economy and lead to severe economic weaknesses. Devotion to military Keynesianism is a form of slow economic suicide."[emphasis added]
Chalmers Johnson, "The Pentagon Strangles Our Economy: Why the U.S. Has Gone Broke"

http://www.alternet.org/story/83555/?page=entire

[teomax]

thats why I think that oil, not silver or gold, will be asset class number one in the near future.

It was really interesting to see flow of money this week to small cap/junior exploration companies listed on the US exchanges. I think once, when majority will realized that Peak Oil is the real deal, all oil companies and in particular those small ones, will create a bubble, similar to previous Tech bubble.

On the other side, the bubble could probably have nasty end as 180-200$ oil will crash economy and bring huge demand destruction. Therefore after spike to 160-200$, we could see oil much lover even under 100$ again, if daily production will levitate on the current peak plateau levels.