Friday, March 18, 2016

Rocks, Paper, Scissors

Food and energy trumps the Fed.  Be careful what you wish for Central Bankers of the world.  You have created an environment and put yourself into a very weak position.  Climate is changing from warm to cold in the Pacific (El Nino to La Nina) and the last two times that has happened, 2007-2008, 2010-2011 we had some nasty sell offs.  This time though, the world's population is even less able to absorb the twin shocks of higher energy and food.

The canary in the cola mine is sugar, coffee and Cocoa.  They all started to move already.  I posted these charts before (Scroll down).  They are on long term buys.  Next is cotton, and it is awakening.  Then the grains by summer.

The squeeze on budgets and company margins will be fierce, and this time the Fed has no room to stop the inflation because everyone's debt is so high.

I will profit from this as I am already prepared, but I won't be happy about it.  You have been so thoroughly duped and so many will suffer for the sake of the privileged.




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