Re: SV: SV: [OPE] The genocidal implications of biofuels

From: Dave Zachariah (davez@kth.se)
Date: Thu Jul 24 2008 - 17:33:01 EDT


on 2008-07-24 20:54 GERALD LEVY wrote:
>
> Interesting article (thanks), but I don't quite follow your
> conclusion above: what, if anything,  does the short-term
> fall in the price of barrels of  crude oil tell us about Patnaik's
> analysis? 
>  
> His main point seems to be that:
>  
> "more and more wealth-holders are shifting from dollar-denominated
> assets to claims on oil as a means of holding wealth. And this
> accounts for the phenomenal rise in the price of oil".
>  
> Why should this be the case, though?  Why hasn't the shift been
> from US dollars to Euros, gold, natural gas futures, et al?
>  

No, I was only referring to the view that oil prices are largely 
inflated by speculation rather than the rise of demand by China and India.

I'm much less certain about his point that "wealth-holders are shifting 
from dollar-denominated assets to claims on oil as a means of holding 
wealth". One would need to see data on that.

//Dave Z
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