Tuesday, May 31, 2011
Commodities UP! Dollar DOWN!
By Reginald Kaigler (DEMCAD)
On June 1st, 2010, the price of corn stood at 354. One year later, the price has more than doubled to 758.50 (5/27/2011). The proof is in the chart above. As the Ticker guy pointed out in his latest video. Qualitative easing has been a total bust. Sure, the stock market has risen by 20% since the implementation of QE2, but it's value has remained the same. And worse still, the cost of living has dramatically soared, while unemployment remains extremely high.
Sugar has moved from a price of 14.40 to 22.69. Fortunately, it has dropped in recent months, but the overall picture remains the same. The price of food is rising. Wheat has increased from 457 to 819.75. Simply put, we are being screwed. The Federal Reserve is propping up this zombie economy by devaluing the dollar. The government doesn't have the money to fund its wars, so it is borrowing money from the fed. And since central banks across the world are losing interest in buying U.S. bonds, the fed is buying it's own debt. The snake is eating its tail. But as you can imagine, it can only do such a thing for so long. I don't know when it will end, but it most certainly will.
Grab quotes from Wikinvest