ETF 'STER

Despite Empty Silos and Hunger, Short Commodity ETFs

The world needs food, and even with recession looming there will be demand for basic food stuffs (rice, corn wheat, and soybeans). China needs to grow it's economy by 7%-8% each year just to stay even. India also needs to grow their economy by 5%-6% to break even.

Arable land is in decline the world over, and this is even more so in China. Agricultural land has been converted to factories and power plants, (hydro and coal) and with the growth requirements in just China alone, (not including India) there will be demand increases for all basic agricultural commodities. If there is a weather event in any agriculture producing, exporting country, this will create even more demand for that agricultural product

While I believe that we will have a short term deflationary cycle, the long term trend for all commodities will continue to rise.

All recessions end eventually, and world governments are pumping extraordinary amounts of capital into their economies. This stimulation to world economies has no precedent, and can lead to only one thing, Inflation, and once you let the inflation genie out of the bottle, it is very difficult to contain.

While you may be correct in the next six months, the inevitable result of the world economic policies will be inflation.

GLTA