Oil, housing expectations

Dear Editor,

As a subscriber to various publications, my name is on many mailing lists. Because of that I receive invitations from publishers of financial newsletter and magazines etc. to subscribe. Within the last week I have received two very interesting invitations.

Have you noticed how the price of gas keeps going up at the pump. The first newsletter said that within 2 years we will be paying $8 to $10 a gallon for gas.

Why? Because most oil producing countries' reserves have peaked and are steadily declining, and also because China is now manufacturing cars and motorcycles and their energy needs are steadily rising. Mexico now consumes seven barrels of oil per person and China one barrel per person per month (or year?) but that consumption will increase dramatically over the next few years.

The leading oil producing countries (Saudi Arabia, Kuwait, Iran, Iraq) will peak out next year. They are already pumping water out of the ocean into their wells to maintain the pressure. The U.S.A. peaked in 1970 and many other countries have peaked since then.

The report cites the worlds leading geophysicists as the source of this information. The report said that since the world runs on oil, millions upon millions of jobs will be lost.

The solution? Liquid Natural Gas. There are vast reserves of natural gas in the coal beds of the world. Two companies have developed a way to liquefy it, but it will take time to get it on the market and in large enough quantities to take up the slack. Invest in these two companies and get rich.

The other newsletter tells about the crash of the housing market that is already under way due to policies set in motion by President Clinton. The two big guarantors are giant government agencies, Fannie Mae and Freddie Mac, whereby almost everyone applying for a loan is approved, has caused an explosion in the housing market and the competition for homes is fierce. Overnight, almost, a $150,000.00 home has gone to $350,000.00 in California. The housing market is responsible for the economic recovery we are now experiencing. What will cause this recovery to come crashing down? The Fed is going to raise interest rates.

Cordially,

Paul Schneider

McCook