Thus, this is not a position on the euro. It’s a position solely on oil.

But, yes, you’re right. Next time, I’ll be more mindful of the potential audience as well.

One of those alternatives is nuclear. If it is done safely — and technology has made it more so than it was even 20 years ago — it can be a relatively environmentally sound, cost-effective way to deal with our rising energy demands (thank you, flat screen tvs). There is large opposition to nuclear because of what happened in Chernobyl and Three Mile Island. However, about 80% of France’s electricity needs are met with nuclear power and they’ve done so with no issues. New York currently is powered to a significant degree by Indian Point, just a few miles north of the Bronx.

What has also been argued by some in the electric industry is that taxation should be implemented on gasoline should the price of oil decrease to encourage less reliance on it for cars and more reliance on electricity in its place.

In the end, high prices of oil relative to the US dollar increases the viability of alternative energy and a decrease in use of gas. We’re seeing it already in that miles driven by cars have gone down over the past several months and the SUV market is at a grinding halt. As people get used to using short-term alternatives (more efficient cars, more public transportation), it has some effect on their long-term habits as well, as witnessed by the increase in efficiency in cars in the late ’70s and early ’80s due to the oil shocks.

Ultimately, we have to have a serious discussion in this country and look at ALL alternatives. That should include nuclear, in my opinon.

First off, you’re making the assumption that the Chinese economy will sustain this growth four years out. It may not. I know of several manufacturers who are looking elsewhere because they find that China is starting to cost too much.

But, besides that, the point I’m making is that the rise in prices for both gold and oil were due mostly to a devalued US dollar. There was no fundamental reason why the relative value of oil increased versus gold beginning just a few months ago. My take is that it’s a short-lived speculative bubble.

Also, someone on DB said that the supply of oil is flat and that running a gold mine is easy. The total amount of gold mined can fill up only four Olympic sized swimming pools whereas we haven’t even begun to drill off the Eastern seaboard of the US, let alone elsewhere.