Food Crisis
Again and again the stock market goes sideways, as does the bond market.
The IMF tried to bully the dollar into going higher today, and it indeed succeeded. However, after the dollar shorts covered, the pound investors took over, and called the IMF bluff. So in the end, the dollar moved sideways too.
Oil and gasoline moved higher, and oil is expected to hit a new high very soon. As will your local gasoline price.
Gold moved up $2.
In the news today….
In my opinion, the big news is that the UN Secretary General declared that FOOD was in crisis throughout the world. And, he is right. You’ve probably missed the doubling and tripling of basic commodities like wheat and corn and rice. These commodities are used around the world, and the world is truly suffering.
Prices of foods in Haiti have increased 40% in the last couple of months, and has resulted in riots. This could easily get worse throughout all parts of the world – think about Egypt.
Food riots are tied to the economic turmoil that I’ve been reporting the past 6 months. How’s that – you ask???? Follow this bouncing ball.
I’ll explain using one small example. Oil prices have been soaring – right? And that’s caused by the perceived inflation in the US Dollar. Well, oil has risen so far that it now pays for Ethanol to be produced from corn. Have you noticed? The reasons for using ethanol is a fraud, as the European Union has decided. US industrial interests keep ethanol alive in the US. The US corn harvest goes to ethanol production, and the amount of ethanol production will increase in the future in the US. So what eats corn to grow fat??? Beef and many other livestock. So, you can count of beef prices increasing in the future – definitely by next year. Why not now??? Well, cattle producers are getting squeezed by the high price of feed; so they are slaughtering their herds to pay their bills – ergo low beef prices.
However this FOOD crisis is real and very dangerous for the world. I’ll keep reporting on it, as it threatens your security and your investments.
Retail sales
Retail sales in March increased by 0.2%. A very small rise, and certainly negative if you adjust for inflation. The lack of retail sales will drive the US into recession faster than any other means.
Here are Friday’s numbers:
Dow Jones 30 Industrial – 12,302 (Down 23 points)
10 Year Treasury Bond – 3.50% (Up 0.03%)
Euro – $1.5832
Gold – $929 (Up $2)
Oil – $111.76 (Up $1.62)
Gasoline – $2.82 (Up $0.01) - Gasoline keeps moving up, up, up, up….
