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We Must Get Our Minds Right!
I was getting dressed this morning and I put on my new favorite shirt. It says on the front…
“My President went to Saudi Arabia and all I got was this Lousy T-Shirt!”
Is it just me or does it embarrass you to that we have to watch our President go with his hat in his hand to the Middle East and basically beg for more supplies of oil. Then worst of all they say NO! Ugh, the horror.
One piece of good news there will be a polar bear in everyones backyard, so saddle up, you will likely be riding this bear to work in the future, or walking because riding a bear is “cruel”. It’s Absurd!
“Mr. Bush’s request, his second in five months, coupled with rising anti-Saudi sentiment in the Democratic-led Congress, underscored the growing tensions between the countries over oil. The issue is also dominating the domestic agenda in Washington, where the Energy Department said Friday it was suspending shipments of oil to the strategic petroleum reserve. “-NY Times
Neither the 300k increase nor halting the SPR fill will have any impact to speak of.
I will tell you what would have an impact. Immediately repeal the 53 cent tax on imported ethanol, allow offshore drilling on the continental shelf immediately and create tax incentives for Hybrid purchases, just for a start.
I was on with my friends Larry Kudlow, Don Luskin, and Mark Skousen last night and they hit the nail on the head. We must get our minds right and realize we need to start taping domestic sources of oil immediately! Safely, but we need to do it.
These hardcore environmentalists need to wake up and realize that drilling can be done safely and strategically and they need to get away from the radical “no drilling” policy.
What’s going to happen is prices are going to surge and then bad decisions will be made as a knee jerk reaction on exploration. If it’s done now and environmentalists are reasonable then it will be handled much better.
Heck, I like polar bears, and I like the national preserves of this country, but we need to accept the fact that we have a national emergency and until we have viable alternatives which may be in 5-10 years, we need to be smarter.
So Larry seemed taken a back with my new $1500 gold target in the next 9-12 months but I think all signs are there for another big rally… I have been calling for a pullback to $822 but we never got there, close but not $822. My feeling is now there are more inflation troubles on the horizon, the dollar is looking weaker and weaker and the other shoe is likely ready to drop, I actually like silver on a supply demand basis even better than gold.
There will be some pullback in gold but suddenly we will wake up and be back above $1000 and people will be scratching their heads. Saying gold is going to $1500 gets about the same reaction as gold going to $800 got a couple of years ago when I was on TV. Gold was at around $480 or so and people made fun of me when I said gold $1000 was around the corner, whose laughing now.
The fact remains that inflation or at least inflation fear are a problem. Gold is one refuge for investors in this environment.
