The End of the Rise in Commodities - Not Even Close

Although this week has been very bumpy in the financial markets with some wild swings, as pointed out yesterday this is very typical before major changes. Commodities, such as gold, silver, wheat, oil, soybeans, etc., have had a significant rise in price in the last six months. This is not because they have become more valuable, it is because the dollar has lost so much value in the last six months. I will let that sink in for a moment. ...

So far in 2008, gold has passed $1,000 an ounce, crude oil $110 a barrel, and U.S. wheat $25 a bushel. All are levels that speculators could only dream of six months ago. Most global commodities are still priced in dollars. So a weak dollar makes them cheap for consumption among non-U.S. buyers in Europe and Asia with strong currencies and reserves. The reverse is also true. A weak dollar and high commodity prices are bad for US consumers because they have fewer dollars and items across the board cost more. Real inflation in the US is well above double digits the last several years, despite what you may hear on the news regarding core inflation. Core inflation does not take into account the prices of food and energy costs. What person does not eat or fill up their car with gas or heat their home?

What this all means is an attempt by the manipulators to squeeze the middle class of America out as much of their money as possible. It is very important for them, especially this year being an election year, to make a huge financial crisis so that their plans can be put in place. In fact, you may find this interesting - one possible scenario is for President Bush to remain in office even after his term ends! You think this is impossible? Go check your history books as to what happened during WWII. Franklin D. Roosevelt remained in office for more than 12 years, and was elected to an unprecedented 4th presidential term in 1944, before dying from a cerebral hemorrhage on April 12, 1945.

Here is one possible scenario for Bush to stay in office. If the reports of a financial collapse of the US economy in September 2008 have any merit, the policymakers could alter the rules in Washington enough for an emergency condition that Bush remains until after the crisis is over. If this occurs in September, you have roughly 6 or more weeks for the public to be gripped by fear and paralyzed from rational thought. As stockbrokers dove from office buildings in 1929 after the big crash, is it too far to imagine another crisis to that magnitude is in the making? We certainly have enough signs to draw numerous similarities between now and the late 1920's and early 1930s.

Why would it be important for Bush to stay in office? Clearly he has done many things in line with the goals of the manipulators. He has sent the US military to Afghanistan and Iraq for more than 5 years in the interest of oil companies and other global conglomerates. The guise of WMDs, ties to Al-Qaeda, and democracy for the Iraqi people have worn thin with the public. The fact that this administration has spent more money than all previous US presidents combined should scare people into accepting that we really have a dictator in office. If he remains, this is another confirmation to that fact.

Getting back to the impact on commodities, even the sharp decline in the price of commodities the last two days is not an indication that the trouble with the weak dollar is over. Not by a long shot. This temporary retracement is just a false assurance from the manipulators that market forces are still driving the market. This retracement will be very short lived. Within two weeks you will see commodities again setting new records.

As mentioned yesterday, time will tell. Maybe these predictions will prove to be false, but not too likely. If these predictions do come true, this will be another confirmation that things are being primed for a major financial upheaval. Do you want to be another victim? Will you look for help from the government? You will be sadly disappointed. What will it take for you to awake from your slumber and act?

As always, the choice is yours.

In the course of my life he broke my strength;
he cut short my days.

So I said: "Do not take me away, O my God, in the midst of my days;
your years go on through all generations.

In the beginning you laid the foundations of the earth,
and the heavens are the work of your hands.

They will perish, but you remain;
they will all wear out like a garment.
Like clothing you will change them
and they will be discarded.

But you remain the same,
and your years will never end.

The children of your servants will live in your presence;
their descendants will be established before you." Psalm 102:23-28 (NIV)


If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com