RR, I think I would disagree or question some of your observations. I doubt anyone can predict what the NOT BoD would be 'thinking' long term. Currently they are looking at consolidating the ROF which in the long run will benefit SH's (IMHO), but I doubt anyone can read their collective minds to determine a price. Although I agree that CLF may not be able to afford the ROF long term, they may try to pick up pieces hoping to ride the coat tales of another major in the years to come.

Secondly, comparing the current economic down turn with the 70's and 80's is misleading as they are quite different. There are many articles and discussions reagrding this so people can read and make their own assessment (own due diligence), but suffice to say it is a very different world today (and I did live through those years), just look at interest rates for example.

In one sentence you mention "looking down the barrel of Stagflation" then the next you talk about "noticeable inflation". I would suggest they are quite different as well. You also mention current US policy is headed towards more stagflation, again somewhat erroneous interpretation IMHO. The policy in the US and numerous other countries is that of economic 'stimulus'. No policy is created to stimulate stagnation...... its a contradiction in terms and logic. With the deficits facing many coutries, Canada included, the governments will put in place policies that will stimulate economies so that they can raise the funds required to pay down deficits. Even if you believe in the pendulum effect of economic activity, in that once governement stimulus programs run out the pendulum swings back the other way; governments will have to create policies and programs to fight that as well.

In an economics update this morning it was specificlly mentioned that metals should experience a steady increase over the next 2 to 3 years, not to say that it is a striaght line appreciation, there are always bumps, but the consensus is appreication.

AS for the US dollar, yes the government will be making efforts to maintain it's value, but note that other governments are making efforts to lower their currency against the US (i.e. Canada wants and will work towards an .80 to .85 cent Canuck buck, otherwise Mfg, exports and GDP suffer). In saying that you seem to link the US dollar with investment in new supply, well to that all I can say is welcome to the new order. The eastern economies have overtaken the US as the dominant force (slightly but still bigger), so it is from those coutries (China mostly) that the investment will come (article in Globe today talks to this by coincidence)

As well, the majors and many governments of the world are looking at finding and creating new mines in the base and precious metals industry (see reference to articel in today's Globe, there are a couple of articles). Although driven by gold currently, other precious (PGE for example) and base metals are following.

As a final note, I read in one of your previous posts a comment about NOT you said:

" I am simply being realistic, trying to distinguish short term considerations from long term valuation. NOT will be much higher long term in my view, it is just not very liquid currently"

I'm not sure what intent you had with chosing those exact words, but the last 4 in that sentence almost appear to suggest, in a subliminal manner, that NOT is illiquid. Again, not a good choice of words and perhaps, just perhaps, an alterior motive... just my humble opinion.

Jeeper