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I am reactivating this thread, not because the economic situation in the USA has improved since I raised it, but because I want to illustrate how the "Smart Money" is currently manipulating world markets. Along the southern shores of the English Channel (La Manche if you are French speaking), wherever there is a headland or bay providing shelter from the prevailing south westerly winds, you will find a significant number of oil tankers at anchor. They are loaded with crude or refined oil products. Is it that the seamen are on their annual holidays? Of course not! They are "awaiting orders", that is to say that the business consortias who have chartered the vessels and own the loads, are delaying their arrival in ports to discharge. The oil price is low at the moment and speculators are trying to push the oil price up by witholding supply.
This summer has been freekish inasmuch as some parts of Europe have had a shortage of rain, whilst other areas have experienced floods. The effect of this in most of Europe means yields of cereals, animal fodder and vegetables are significantly down. Many agricultural wholesale buyers /packers are contracted to supply minimum quantities of best product yields to giant food processing conglomerates, who will get the first claim by reason of their contractual and financial clout.
There will be reduced amount of agricultural products available to smaller trading organisations. More expensive food and meat (dearer animal feed) must surely be the consequence of a lesser productive harvest season coupled with "smart money" intervention.
Watch your grocery bill rise in the coming weeks!
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