Sharky:

Your claim that you think oil will go up in price, perhaps after going down a bit, is I believe accurate. The trigger will be a de facto depreciation in the value of the US$ which has become I believe seriously overvalued. As the remonetization of the US economy becomes more and more apparent, and inflation begins to take hold, we will see oil begin to revalue higher compensatory to the a decline in the US$. Unfortunately, I believe the Euro will also decline in value.

With the announced plans of China to buttress their economy with $500 billion of spending between now and 2010, I believe there is a strong potential that they will use their one trillion plus foreign exchange reserves of US currency to accomplish such spending. As this becomes apparent, it will place further pressure on the US$ strength.

What I believe we will see is a reordering of international currency standing with the Yuan strengthening and the US$ and Euro weakening. The Canadian $ will likely strengthen relative to the US$ and the Euro based on the strength of Canada as significantly a repository of natural resources which will be in demand by the developing world.

Though it might not be comfortable for those of us from the US and Western Europe, it will be interesting to watch. If I am correct, at least with our holdings in a Canadian company, we should benefit from the longer term currency positions as well as from the increasing value of oil.

I owe you a letter which I will send later tonight.

Brian