Mrcauser’s Weblog

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It’s the oil prices, stupid…..

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Can’t emphasize it enough. Too many gangsters playing in the commodities markets. All those U.S. dollars have got to find a home. Oil, stocks, gold, food and in a few years or so, real estate. Money doesn’t stay “lost”. Every dollar of the deficit spending has to be accounted for. It all comes back home to the Sovereign nation that issues it. Use to cause runs on gold but Nixon put an end to that plan and put us directly on a fiat system .

But I told you this a couple of years before. Check here for  my post in 2008.

The Coming Depression: Ready? Food Prices Set To Explode This Winter

Some recent headlines from the Financial Times: Soaring prices threaten new food crisis – Oct-08
Raw materials index soars to two-year high – Oct-08
Wheat and corn rise as Ukraine limits exports – Oct-07
Shortfall drives tin to record high – Oct-05
Food inflation is real, and it is here. A comment from a recent reader’s post: “Just yesterday I compared my receipt from a grocery run to prices I have from the same exact store from September 15, 2009. Bacon? Up 52% to $13.69 from $8.99 for 4 lbs. Butter? Up 73% to $9.99 from $5.79 for 4 lbs. Pure vanilla extract up 14% to $6.79 from $5.95. Chopped dried onions up a mere 2% but minced garlic (wet) was up 32%.”
Defensive buying by investors worried about the inflationary effects of quantitative easing (QE) is behind the latest rise in gold, metals and food commodities to near record levels this week. Analysts have the usual litany of explanations: Chinese demand; plans for more QE from the Fed; a billion bushels of grain a year going to make ethanol….as Agricultural commodities prices exploded again on Friday, threatening higher global food prices, US forecasters slashed grains production estimates after adverse weather damaged crops worldwide.

Written by mrcauser

October 9, 2010 at 7:13 pm

Posted in Uncategorized

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