I brought it over here Tom, because I thought we are getting off topic, maybe.
It is my beleif that the price of oil will resume its upward trend or stay between $85- $100 short term. With the price of oil at this level, it has already added great inflation into the system. The price of oil has pulled back over the last couple weeks, but the price of fuel remains high, keeping the inflation intact. The price of oil right now, IMO is/can be, very volatile as considerable unrest thrives in the world today.
So I dont see the interest rates falling or staying the same. Governments need money, especially south side, they will have to offer an attractive interest rate to get buyers of the debt instruments. This inflation, that looks like its got a foot hold, has to be tackled by raising the rates. Although the LIBOR has been virtually flat as of late, this will be your first indicator of a rate hike, and should be monitored closely, IMO.
There are too many things out of whack right now. Your thoughts could be right, but I think it will be like I say. I just don,t see any solution at this time, and if the U.S. keeps printing money, it allows the inflation rate to rise. The world is caught in a vicious circle, and eventually, the fiddler will have to be paid. This is what I am speaking of, the time may be near, (which I think), or could be further away (as you think).
I respect your opinion, and I say a good discussion!
I agree fully with your thoughts on the sp of SLI, in relation to the POG.