90 cent dollarNofluff,
You and I agree on everything except the price of oil. I see a higher price for WTI and Brent in the near future as current price will not support to incoming increase in use due to lower price, QE and Indian and Chinese growth consumption.
However, at 70 cents on the dollar it makes TKO look pretty good as a copper producer, but the price of copper will sink in such a strong USD market.
It is all Navel Gazing, but I have hard time seeing TKO under 2 bucks by PDAC.
Jan 22nd = EU QE, commodities go up in terms of non USD prices.
After Chinese New Years= China rolls out stimulus
June 2015= It becomes clear that India is returning to growth
2016= new technologies increase the efficency of manufacturing (3d printing, robots) leading to dropping prices for good, the only way to combat this drop in prices is to print even more money so that the consumers have enough money to buy the newly built cheap goods.
Essentially we are on the QE tread mill and won't get off it until the world gets back to inflation which can only come from increasing salaries or increasing commodities as the cost of manufacturing as a function on labour cost increases has been and is in a terminal decline. As a matter of fact, inflation, like money, is a purely human invention, and when pitted against linear thinking vs exponential thinking, there is no such things as Adam Smiths invisible hand without human intervention on the improving efficency side of things. In nature the energy costs of growing as a plant have been unchanged for millions of years except for almost inperceptible changes from natural mutations, whereas humans change things more in 1 year than nature will in millions.
In conclusion, oil is going back to 80 bucks, the CDN Debt to GPD ratio is excellent, and we have the goods the worlds needs to make things, and it is getting cheaper to make things so we will need more things. (or rather we, the human species, can afford to buy more things!)