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2008-03-14 Home Front Economy

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Posted by Steve White 2008-03-14 00:00|| || Front Page|| [11125 views ] Top

#1 I've read elsewhere that the price of crude is rising only in terms for the USD. When considered in terms of Euros, Swiss Francs, etc., the price hasn't changed much since last year. If that's the case, a record price for crude in $ and the falling value of the $ are the same phenomenon. Can't find a reference or graph for this.

Posted by Anguper Hupomosing9418 2008-03-14 00:31|| 2008-03-14 00:31|| Front Page Top

#2 My wish list.

I wish Australia, Canada and the USA withold Grain Sales for two months.

That means withold sales of the following foods, WHEAT [winter and spring; Soft/Hard/White/Durum/Red], Barley, Rye, Soy Beans, CORN, etc. untill prices shoot to 20 X times current prices or until OPEC snap, crackle pops.

Posted by RD">RD 2008-03-14 00:36|| 2008-03-14 00:36|| Front Page Top

#3 I think we will sell every bit we can grow at premium prices then the feds will hand out farm support on top. Gonna be a lot of rich "farmers" in congress this year.

Posted by tipover 2008-03-14 01:48|| 2008-03-14 01:48|| Front Page Top

#4 Oddly, Refined Gasoline is trading in a twenty cent range while crude sky rockets. something about a 15 year high in stored gasoline, and a 6% drop in sales over last year.
The same folks who gave us the Tech Bubble and the Housing Bubble are now giving us a Commodities Bubble. Perhaps we should be enraged at them rather than OPEC?

Posted by Unaiger Tojo4448 2008-03-14 01:53|| 2008-03-14 01:53|| Front Page Top

#5 saw one of them drooling about the possibility of $400/bbl oil on Fox

Posted by 3dc 2008-03-14 01:59|| 2008-03-14 01:59|| Front Page Top

#6 Pretty much every traded agricultural commodity has hit record highs in the last couple of weeks. The latest was rice.

Expectations are of good to excellent crops this year, which is keeping a lid on prices.

So far this year, 4 countries have stopped wheat exports - from memory, Argentina, Ukraine, Khazastan and Russia.

Governments simply won't allow unrestricted exports while domestic prices are soaring and there will a point where that is true of the USA.

So keep a close eye on crop news (wheat rust?) this year, especially in south and east Asia. RD may get his wish, but for a lot longer than 2 months.

Posted by phil_b 2008-03-14 03:23|| 2008-03-14 03:23|| Front Page Top

#7 If that's the case, a record price for crude in $ and the falling value of the $ are the same phenomenon.

Commodities prices in the US most definitely demonstrate a strong inverse correlation with the relative value of the dollar. The current cycle is, however, something of a perfect storm.

With the dollar in free-fall expect commodities to continue their upward march, at least in the very short term. Soon, however, either commodities prices will push the US economy into a deep recession and, as always, the rest of the world will fall at least as far and as fast or the speculative bubble in commodities will burst sparing us most of the long-term damage.

The talk these day ssure sounds a lot like the talk that immediately preceded the bursting of such bubbles in this an other sectors in the past.

Posted by AzCat 2008-03-14 05:26|| 2008-03-14 05:26|| Front Page Top

#8 This is all due to excess monetary growth by the fed to fight one "financial crisis" after another. Sooner or later we're going to have to face the music. The longer we put it off, the worse the pain. Just wait till this summer when some manufactured crisis around the Olympics gets the Chinese po'd and they start dumping dollars to really drive down the dollar in anticipation of the election. Much more to come.

Posted by Nimble Spemble 2008-03-14 07:37|| 2008-03-14 07:37|| Front Page Top

#9 or the speculative bubble in commodities will burst

This would cause huge financial losses in the speculator business and the government will have to step in and bail them out. (I wish I was sure I was being sarcastic.)

Posted by Glenmore">Glenmore 2008-03-14 07:38|| 2008-03-14 07:38|| Front Page Top

#10 Any surprise with the Fed kicking in another couple billion into the market? More money chasing a limited [by human design] commodity, the basics of inflation.

Posted by Procopius2k 2008-03-14 08:42|| 2008-03-14 08:42|| Front Page Top

#11 Its the f**king hedge funds. Doing to this what they have done to other sectors.

Liquidate and OUTLAW them now.

Posted by OldSpook 2008-03-14 11:46|| 2008-03-14 11:46|| Front Page Top

#12 ***NO*** Bailots for the speculators.

F**k them. They took the risks, they screwed up commodity prices, they should take the beating.

Same as any family gambling away the family funds in Vegas.

No Bailouts for Speculators.

Posted by OldSpook 2008-03-14 11:50|| 2008-03-14 11:50|| Front Page Top

#13 It is well known that the speculators, which hedge funds are by definition, is behind this commodity runup. They went there after they decimated real estate. Make them take physical delivery of their purchases for 60 days. This stops the world wide speculation scheme. If they have to buy and hold, only legitmate traders can remain. Oil would drop like a rock, back to $40/bbl range overnight.

Posted by Woozle Elmeter 2700 2008-03-14 11:58|| 2008-03-14 11:58|| Front Page Top

#14 Probably not $40. Maybe $70 though.

Posted by Glenmore">Glenmore 2008-03-14 12:16|| 2008-03-14 12:16|| Front Page Top

#15 wow Ima impressed,

it waz just a po little olde wish list....tho. ~:)

Posted by RD">RD 2008-03-14 13:23|| 2008-03-14 13:23|| Front Page Top

#16 Truthful Headline: Dollar Falls to a record low of 111 per Oil barrel.

Posted by Bright Pebbles 2008-03-14 16:54|| 2008-03-14 16:54|| Front Page Top

#17 Bright P,
And as the dollar falls, so fall my plans for a trip to the British Isles. Alas. But come on over here - we're a bargain these days!

Posted by Glenmore">Glenmore 2008-03-14 17:05|| 2008-03-14 17:05|| Front Page Top

#18 Requiring delivery and hold for 30 days would end this manipulation of the economy by hedge funds with too much influence and too much borrowed money distorting the market.

I still say they should outlaw the trade in derivatives with ANY margined cash. You buy a derivative, it must be liquid.

That would also stop a lot of the hedge funds dead in their tracks with the arbitrage on the margins, and the huge overruns in price followed by collapses when the margin calls come in and they cannot be met once prices top out.

The fiscal games are out of hand. Revoke the entire concept and legality of margins. Cash ONLY.

Demand cash liquidity in the market, and make it the law for anyone other than individual investors.

Punish the fat cats that are doing this.

Either now, or when the economy collapses, we the people will hunt them down and shoot them.

Posted by OldSpook 2008-03-14 18:50|| 2008-03-14 18:50|| Front Page Top

#19 Interest rates are too low.

They've been too low for too long.

The bank reserves have also been shafted.

Now the Fed is bailing out BSC via JPM to the tune of 200Billion dollars.

If you want to know who's manipulating the market, it's the GOVERNMENT!

Posted by Bright Pebbles 2008-03-14 21:00|| 2008-03-14 21:00|| Front Page Top

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