SW Richmond

Today in Commodities: Dog Days of Summer

jerrydd,

I am genuinely disgusted by the attitude that continually vomits up this question, and blurts it out as a self-righteous demand: 'Just where were you when repubs ran up the debt, spent like drunken sailors. Isn't that where are problems come from?'

It has become all too popular, when the message cannot be contested, to try to discredit the messenger. As if it were necessary to reply, I began commenting here at SA in late Spring '08, and here's a link to my early comments; see for yourself what my position is regarding government bailouts and interventions.
seekingalpha.com/autho...

Your statement: 'Obama's health care reform will greatly lower many businesses personal costs' reveals a deep seated naivete. If employers' costs are lowered, who will pay for the health care? Taxes? Who will pay the taxes? Employees, businesses, or both? Those are the only places taxes come from. You advocate going out and getting money from the magical pool of free money known as 'someone else's'. You advocate using your vote to do it; in other words, you advocate theft under color of authority. Theft is no basis for a system of government, yet it is the system we get from dems and repubs. THAT is what has to stop.

Regarding cap and trade: Goldman will profit handsomely from trading credits. Guess who they gave money to in the last election?
www.ireport.com/docs/D...
'Goldman Sachs and Al Gore Plan to Make Billions with CAP and Trade Scheme as Millions Lose Jobs'


Corporate welfare has accelerated under Obama; bank bailouts continue, foreign wars continue, Obama wants to EXPAND U.S. involvement in Afghanistan. The deficit under Obama is nearly $2Trillion his first year; he wanted to be president, the deficit is HIS. Bush and the neocons are first-class nutjobs and did a lot to advance the police state. Obama promised to roll it back. He has instead advanced the police state by publishing a DHS document classifying practically anyone who resists his measures as 'extremists'; it turns out the 'research' for the DHS document was a bunch of web sites.

Find someone else to worship; Obama is just as bad as Bush in many respects, and worse in several.

Today in Commodities: Dog Days of Summer

Bernanke has stated that the Fed's QE asset purchases will cease and not be renewed. The markets will probably interpret this as a withdrawal of liquidity. You may remember what happened last time. This in turn provides the set up for the next wave of intervention, but will provide much-needed support for the Treasury market in the meantime.

IMO commodities will come under much downside pressure, probably including the PM's if this liquidity withdrawal persists for any significant amount of time (months). Considering the political background, though, Obama wants the economy to seem to be recovering so that he can get cap and trade and "healthcare reform" passed; this argues for continued market supports / upside intervention. If the future was clear, everyone would discount it immediately, so no guarantees.

A brief period (year) of deflation preceded the Argentine hyperinflation. That may be where we are now. First a deflation to cost you your job, then a hyperinflation to make whatever savings you might still have worthless. In other words, complete destruction of the middle class as it reverts to abject poverty and hand-to-mouth survival.
www.itulip.com/forums/...