THE COMMODITIES MARKETS ARE BEING DISTORTED BY THE MASSIVE LIQUIDITY BINGE BY THE FED...! READ LINK FROM NYT...
WHAT SEEMS TO BE HAPPENING IS THAT SPECULATORS FLUSH WITH FED CASH ....WOULD RATHER HOLD PAPER THAN THE REAL ASSETS... SO THE PAPER VERSION OF THE COMMODITY IS ACTUALLY..."WORTH MORE" THAN THE REAL THING...EVEN UP TO THE SETTLEMENT DATE!!
AFTER ALL WHO WANTS A BOX CAR LOAD OF ROTTING PORK DEPOSITED ON THEIR FRONT LAWN!! FUCK NO! I'LL "PAY EXTRA" NOT TO DEAL WITH IT...!
I'D PAY EXTRA TO JUST HOLD THE PAPER...AND AVOID THE DAMN BOX CAR DELIVERY ALTOGETHER! AND THAT SEEMS TO ACTUALLY BE HAPPENING IN COMMODITIES NOW...
BUT THIS MEANS THAT "DEALING IN PAPER" PAYS A PREMIUM TO DEALING IN THE "REAL STUFF" WHICH IS WHAT THE COMMODITIES FUTURES MARKET WAS SUPPOSED TO DO!!
IT APPEARS THAT THE COMMODITIES MARKET IS NO MORE THAN A POKER GAME NOW... ONLY ROUGHLY ATTACHED TO THE "ACTUAL PRODUCT"... YOU MIGHT AS WILL BET ON A COCKROACH RACE...!! OR WAGER ON A FROG HOPPING CONTEST...!
THE REAL QUESTION IS WHY ARE THE ARBITRAGERS NOT GETTING INTO THE GAME...? I MEAN THIS LOOKS LIKE FREE MONEY...
WELL...WHO KNOWS...BUT I SUSPECT THAT IT IS NOT ONLY COMMODITIES THAT ARE MASSIVELY OUT OF WHACK NOW...
THE WHOLE FUCKIN MESS IS SCREWED UP BY THE BUBBLE MENTALITY OF THE PAST TEN OR TWENTY YEARS...!
I SUSPECT THAT THE "COMMODITIES ANOMALY" IS REALLY JUST A BIZARRE MANIFESTATION OF A DEEPER PROBLEM... NAMELY...
THE MASSIVE INFLATION IN PAPER ASSETS THAT HAS CHARACTERIZED OUR ERA...WHICH NOW SEEMS TO BE ENDING BADLY...
WE KNOW THAT MARKETS CAN BE MANIPUATED BY THE CENTRAL BANKS...WE JUST NEVER THOUGHT IT WOULD BECOME ESTABLISHED POLICY...ESPECIALLY FOR THE FED AND THE DOLLAR...WHICH KEYNES SET UP AS THE "HOLY OF HOLIES" UNDER THE BRETTON WOODS AGREEMENT...
ALAS...BRETTON WOODS IS NOW HISTORY... NOT A SHREAD OF IT IS LEFT...ALTHOUGH THE "CONCEPT" STILL RULES US "FROM IT'S GRAVE" SO TO SPEAK...
KIND OF LIKE THE "DIVINE RIGHT OF KINGS" WHICH DOMINATED THE MIDDLE AGES THINKING... EVEN WHEN IT WAS NO LONGER IN PRACTICE...
FUTURE HISTORIANS WILL HAVE FUN WITH OUR LITTLE COMMODITIES ANOMALY... BUT MY HUNCH IS THAT IT'S ALL ABOUT THE MASSIVE PAPER ASSET PRICE BUBBLES...WHICH ARE EVEN NOW SLOWLY ENDING...AS THE DOLLAR COLLAPSES UNDER IT'S OWN DELUSIONAL THINKING...
