http://www.contrarianprofits.com/articles/the-best-way-to-profit-from-135-oil/2613 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 24 Nov 2009 15:08:08 -0500 http://wordpress.org/?v=2.8.5 hourly 1 http://www.contrarianprofits.com/articles/the-best-way-to-profit-from-135-oil/2613/comment-page-1#comment-1381 Sam Sat, 31 May 2008 00:56:18 +0000 http://www.contrarianprofits.com/articles/the-best-way-to-profit-from-135-oil/2613#comment-1381 While I don't disagree with what you are saying, I think it's a little unreasonable to postulate that a grocery store clerk made $7.50 anywhere in 1970. It's only slightly less than a union apprentice machinist made in the same era, but this would seem to illustrate your point better. While I don’t disagree with what you are saying, I think it’s a little unreasonable to postulate that a grocery store clerk made $7.50 anywhere in 1970. It’s only slightly less than a union apprentice machinist made in the same era, but this would seem to illustrate your point better.

]]> http://www.contrarianprofits.com/articles/the-best-way-to-profit-from-135-oil/2613/comment-page-1#comment-1380 James Quam Fri, 30 May 2008 22:13:40 +0000 http://www.contrarianprofits.com/articles/the-best-way-to-profit-from-135-oil/2613#comment-1380 Chris that is great but still leaves me scratching my head. Here's my take. Is gas expensive? No the value of the dollar we know is falling. But what is it's true value or as Warren would say intrinsic value? In 1980 a gallon of gas peaked at $1.30-1.40 a gallon. Take that value to this inflation calculator. http://www.westegg.com/inflation/infl.cgi Enter the values , I entered 1.30, the result $3.67 for 2007. Pretty close The same result for a gallon of milk- in 1929 (.45c)yields a 2007 price of $5.40 very close. Now take the value of a barrel of oil in 1980 of $37.42 and in 2007 yields 105.42. Do the fed CPI figures look tampered with now? Why can't people afford gas? The inflation calculator has the answer. Take the wage of a journeyman grocery clerk in 1970 which was $7.50 In 2007 he should be making $42 a hour to keep up with the price of gas. Whoa he only makes $17.80 per hour. The fed is taking $200 per day from the clerk. Buys alot of gas doesn't it? Now does the wage of a GM union member seem expensive? Nah it's all in the dollar. Regards Jim Quam P.S. Here's something interesting. Take the value of gas prior to the 70's gas spike what I would call a baseline.In 1973 oil was $3.60 before it spiked higher into the 80's . Enter that number into the inflation calculator and you come up with a non crisis price for oil of $17.66. Will it reach that price in a reaction? Don't know. Chris that is great but still leaves me scratching my head.
Here’s my take.
Is gas expensive? No the value of the dollar we know is falling. But what is it’s true value or as Warren would say intrinsic value?
In 1980 a gallon of gas peaked at $1.30-1.40 a gallon. Take that value to this inflation calculator. http://www.westegg.com/inflation/infl.cgi
Enter the values , I entered 1.30, the result $3.67 for 2007. Pretty close
The same result for a gallon of milk- in 1929 (.45c)yields a 2007 price of $5.40 very close.
Now take the value of a barrel of oil in 1980 of $37.42 and in 2007 yields 105.42. Do the fed CPI figures look tampered with now?
Why can’t people afford gas? The inflation calculator has the answer.
Take the wage of a journeyman grocery clerk in 1970 which was $7.50
In 2007 he should be making $42 a hour to keep up with the price of gas.
Whoa he only makes $17.80 per hour. The fed is taking $200 per day from the clerk. Buys alot of gas doesn’t it? Now does the wage of a GM union member seem expensive? Nah it’s all in the dollar.
Regards Jim Quam
P.S. Here’s something interesting. Take the value of gas prior to the 70’s gas spike what I would call a baseline.In 1973 oil was $3.60 before it spiked higher into the 80’s . Enter that number into the inflation calculator and you come up with a non crisis price for oil of $17.66. Will it reach that price in a reaction? Don’t know.

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