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Commodities Take It on the Chin
The
commodity space (with the exception of Gold) is getting slammed as a result of
the US Dollar’s bounce. To some degree this was needed as the inflation trade
had indeed gotten a little lopsided, but with inflation exploding around the
world, I view this pullback as a buying opportunity, not the start of a bear
market.
Remember,
there is TRILLIONS in liquidity sloshing around the system right now. Inflation
is already guaranteed. Sure we might have another debt Crisis, but there is
absolutely no question that we’re going to be seeing massive debt defaults in
the coming months and years. Currencies will be taking major hits when this
occurs.
So with that
in mind, I continue to maintain that we’ll be major inflation in the markets
before the end of 2011. The weekly US Dollar chart has only one line of support
left before the currency collapse hits.
In this
sense, the drop in commodities is a great opportunity to prepare for the coming
Inflationary Storm. The Fed will pump more money into the system
GUARANTEED. They may have to do it
behind the scenes, but they WILL
Have a look
at what they’ve done this year already:
What you’re looking at it a $500 billion
money pump (ON TOP of QE 2’s $100 billion per month) over the last four months.
So all told we’re looking at nearly $1 TRILLION in new money hitting the
financial system in the first quarter of 2011 ALONE.
So if you’re
not preparing for mega-inflation already, you need to start doing so NOW. The
Fed WILL continue to pump money into the system 24/7 and it’s going to result
in the death of the US Dollar.
If you’ve
yet to take steps to prepare your portfolio for the coming inflationary
disaster, our FREE Special Report, The
Inflationary Disaster explains not only why inflation is here now, why the
Fed is powerless to stop it, and three investments that absolutely EXPLODE as a
result of this.
All in all
its 14 pages contain a literal treasure trove of information on how to take
steps to prepare AND profit from what’s to come. And it’s all 100% FREE.
To pick up
your copy today, got to http://www.gainspainscapital.com
and click on FREE REPORTS.
Good
Investing!
Graham
Summers
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US Dollar still going down, Commodities and stocks still inflating, it simply cannot be ...Rob Precter and his Elliott (Idiot) Wave goons have been predicting the exact opposite throughout last year and into 2011
"..a very large decline in 2010, at least as big as '08.."
"..I'm very, very bullish the US Dollar.."
Gold's going nowhere, waste of money for Rob the Nob
http://www.youtube.com/watch?v=Tz5PrY2gjz0
Elliott Wave International : the worst predictions in the world (as 2010 proved beyond all reasonable doubt)
That Dollar Index chart makes me hungry, but now, I can't afford to eat any more!
As an ag commodities trader, I agree that major inflation is coming our direction!
It's going to be US taking it on the chin when commodity prices, thanks to "Bubbles" Bernanke, finally start to show up en masse at the grocery stores!
By the way, despite that some of the food commodities were higher today, I agree wholeheartedly with the central premise of this article, which suggests that despite a commodity respite today, prices are likely going to go still higher!
Got food? You're gonna need it!
Got food? At these prices, you're gonna need it!
Latest from Rick Rule. Thinks gold isn't so much in a bull market as paper is in a bear market.
http://goldandsilverlinings.com/?p=710
Gold and silver were setting new records today! Livestock futures (cattle, hogs) were also higher! But some of the softs were, well, you know, SOFT today! :)
At least sunlight cost still as much as it did a year ago...
Thats the problem with writing an article on declining commodities.... They rebound within minutes.
It was a good read until it got posted :)
Not ALL commodities are taking it on the chin! The grains LEAPED today!
Any good grains ETF?
Long term? Sure. But I'm not so sure we don't get a counter trend USD rally first.