A hungry man is an angry man. J.S Kim has a great article today on Seeking Alpha. It is worth the read in its entirety. For the time-challenged, I'd just like to quote a few parts.
"... why commodity ETFs that focus on these particular commodities (PowerShares DBA, for example) will temporarily flounder. Today, according to the United Nations, more than 1 out of every 7 people in the world go to bed hungry due to rising food prices. The largest contributor to rising food prices is Central Banks’ monetary policy of devaluation of currencies worldwide. In turn, this has spurred food riots in 30 different countries.
Last week, I thought of the travesty of the headline “We Saved the World,” a claim made by US Federal Reserve Chairman Ben Bernanke at the Jackson Hole, Wyoming banking symposium of global Central Bankers. Bernanke and his cartel of international bankers definitely did not save the world. All they did was take money from citizens and give it to big banks to help them reinflate their balance sheets. In turn, as the financial sector normally leads a general stock market index higher, they succeeded in inflating stock markets in the face of horrendous economic fundamentals.
However, let’s make it clear that this action was more comparable to “fooling the world” rather than “saving it.” When this inflated stock market bubble bursts as it surely will at some point in the future, whether China bursts first and drags down the world or the US markets burst first, then people will understand Bernanke’s and all Central Bankers’ duplicity. "
Did Bernanke and Paulson consider this?
DBA chart:
HAU chart (2X, CAD):
Wednesday, August 26, 2009
Bernanke Says He Saved the World, But Millions Go Hungry, DBA to Flounder
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1 comment:
This is just sad. How could these people (Bernanke et al.) sleep at night?
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