The Baltic Dry Index hit a 52 week high this week. I don't think it's a sign of any strong economic activity though. Basically, Hedge Funds and other Scalawags & Carpetbaggers of the like are spreading this horrible rumor that demand is still voracious in China for commodities.
Give me a break.
Everybody knows that China, not Michael Phelps, won the most Gold medals in the recent Olympics for their stockpiling efforts. Where would we be if China didn't hoard coal and steel and copper before shutting down those plants before the world focused on the air quality during the Olympics? Well, for one thing, commodity prices and alleged steel production wouldn't be as high as it is today.
Sell the dollar, buy commodities. It's that simple. Hell, Corn is up over 25% the past 3 months but corn inventories are highest in years.
Quote:
<table border="0" cellpadding="6" cellspacing="0" width="100%"> <tbody><tr> <td class="alt2" style="border: 1px inset ;"> Harvested corn acreage in 2009 will also be the second highest since 1946, trailing only the 2007 level of 86.5 million acres in 2007. </td> </tr> </tbody></table>
http://cornandsoybeandigest.com/kent...ybean-harvest/
Here's an article that was in the WSJ today about the near extinction of the Cocoa Futures Market, which went electronic in hopes of getting an increase in volume, aka: more money from commissions. Let me tell ya, a tear came to my eye after reading this sentence over the morning coffee: Previously, the New York Board of Trade's cocoa trading pit opened at 8 a.m. New York time and closed at 11:50 a.m. It was populated by a group of roughly 50 floor brokers. An average floor trader made $250,000 a year, and some could make as much as $1 million. Young traders usually went for beers after the market closed.
Folks, we have completely been sold down the river so some trader who works a couple hours a day - no holidays, no weekends, no midnight or afternoon shifts - can make a leveraged (bullish) bet on commodities which are meant for consumption, and sell them for big gains while only bidding up the price we pay for bread, milk, and gasoline in the process.
But don't worry, there won't be any inflation as long as those undisclosed buyers continue to pile into the treasury market with each auction. Until then, inflation is surely on the horizon. No doubt. You break it, you buy it- and right now the system is broken. Inflation is a political decision and every central bank in the world is doing the dance right now.
Give me a break.
Everybody knows that China, not Michael Phelps, won the most Gold medals in the recent Olympics for their stockpiling efforts. Where would we be if China didn't hoard coal and steel and copper before shutting down those plants before the world focused on the air quality during the Olympics? Well, for one thing, commodity prices and alleged steel production wouldn't be as high as it is today.
Sell the dollar, buy commodities. It's that simple. Hell, Corn is up over 25% the past 3 months but corn inventories are highest in years.
Quote:
<table border="0" cellpadding="6" cellspacing="0" width="100%"> <tbody><tr> <td class="alt2" style="border: 1px inset ;"> Harvested corn acreage in 2009 will also be the second highest since 1946, trailing only the 2007 level of 86.5 million acres in 2007. </td> </tr> </tbody></table>
http://cornandsoybeandigest.com/kent...ybean-harvest/
Here's an article that was in the WSJ today about the near extinction of the Cocoa Futures Market, which went electronic in hopes of getting an increase in volume, aka: more money from commissions. Let me tell ya, a tear came to my eye after reading this sentence over the morning coffee: Previously, the New York Board of Trade's cocoa trading pit opened at 8 a.m. New York time and closed at 11:50 a.m. It was populated by a group of roughly 50 floor brokers. An average floor trader made $250,000 a year, and some could make as much as $1 million. Young traders usually went for beers after the market closed.
Folks, we have completely been sold down the river so some trader who works a couple hours a day - no holidays, no weekends, no midnight or afternoon shifts - can make a leveraged (bullish) bet on commodities which are meant for consumption, and sell them for big gains while only bidding up the price we pay for bread, milk, and gasoline in the process.
But don't worry, there won't be any inflation as long as those undisclosed buyers continue to pile into the treasury market with each auction. Until then, inflation is surely on the horizon. No doubt. You break it, you buy it- and right now the system is broken. Inflation is a political decision and every central bank in the world is doing the dance right now.
