>How does this shake down in small town NH at present?
>Price of dry firewood is rising rapidly, not too srprisingly. More
>inteeresting to me is that if the price holds , what will happen to the
>price of California produce in the local markets which is supposedly 90 to
>95 % energy.
If the energy price holds i would expect the stock market to dip
and our economies slide into a recession. Inflation will heat up
and bonds will become almost worthless. The governments can try
to pump the markets up by increasing the money supply but that
usually drives inflation. Everything will cost more and
people will blame the current political group.
Eventually this will happen unless we develop a better energy
plan. In the past we have used pressure and
force to maintain oil flow, but i don't know if this is
possible today. The probability of war also increases as
the oil becomes scarce.
On the plus side a few people who ignored the problem are
forced to actually think about it. Those who have thought
about it find themselves better prepared and avoid the shock
and feelings helplessness.
The "smart" money and economists know all this and they shift
their investments to account for the coming changes. This
creates a good indicator to watch for. Money begins to move
towards these investments:
1. Stocks of the following types: natural resources, core
industries, stable income paying stocks.
2. Investment grade land.
3. Money Market funds
My response is to yawn and spend the day starting seeds. I'm
currently starting a batch of seeds every month all winter to
see how they do in the green house. The January seeds all sprouted
but just sat there. I suspect the February batch will do much
better.
jeff (gardening is a constant joy)
