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Gold is Wealth Hiding in Oil

recession hysteria will deliver hyper-inflation

Posted by Ivo Cerckel on December 10th, 2008

“Our” bankers are still not realising that their undercapitalised institutions which daily commit the crime of fractional-reserve banking are slowly dying from dollar poison.

Here’s a Khaleej Times article of today, 10 December 2008, which quotes a report by Abu Dhabi Commercial Bank (ADCB) arguing that the UAE will be able to tide over the global economic melt-down as the country is well-positioned to maintain fiscal surplus in 2008 and 2009 since it has the lowest “break-even oil price” in the GCC of $23 (Dh84.48) per barrel against the IMF’s baseline petroleum price projection of $68 per barrel for 2009. (1)

Look, the article mentions the oil price also in dirham. Why is that?

The very large volume of hysteria which has been raised predicting a coming “recession” is probably the clearest indication that the USA central bank, the Fed, is going to go insane in the opposite direction. Think about it. The Fed doubled the [USA] money supply during the decade of the 1980s. Here in 12 weeks, the Fed has multiplied Federal Reserve Credit by 2.5, times with Dallas Fed chief Richard Fischer predicting a triple by the end of December.
So, if you have one ounce of common sense, you know that the “error” the Fed makes this time will be the same “error” they make every time: TOO MUCH MONEY. (2)

This means inflation. This means a rising gold price, thus a rising price of the reserves of the Khaleej dinar, thus a rising value of the Khaleej dinar.

The recession hysteria will lead our Masters to hyper-inflate their currencies.

This is what reflation is about.

Will this lead to an economic crash?

What will happen after that?

As a first step, the Khaleej Times article which I quoted above mentions the price of oil in dirham.

Ivo Cerckel

NOTES

(1)
UAE Can Maintain Fiscal Surplus at $23 Oil
Khaleej Times 10 December 2008
http://www.zawya.com/Story.cfm/sidZAWYA20081210042914/
DUBAI – UAE will be able to tide over the the global economic melt-down as the country is well-positioned to maintain fiscal surplus in 2008 and 2009 since it has the lowest “break-even oil price” in the GCC of $23 (Dh84.48) per barrel against the IMF’s baseline petroleum price projection of $68 per barrel for 2009, a report by Abu Dhabi Commercial Bank (ADCB) said.

(2)
Gold – on the Cusp
By Howard Katz
Dec 8 2008 11:26AM
http://www.kitco.com/ind/katz/dec082008.html

One Response to “recession hysteria will deliver hyper-inflation”

  1. Walleye fishing with planer Boards Says:

    Walleye fishing with planer Boards

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