Friday, February 18, 2011
Nailing jello to the wall
In looking at food prices it's hard to tell exactly what will happen in the near future. I know that the oil speculators are playing the market because from what i'm hearing of late supplies are rising while demand is falling. Food being a perishable commodity is tied to the whims of the weather and it's also a necessity. But then there are the speculators who could care less about whether some village in Africa has enough grain to make it through the winter. They are only interested in increasing their portfolio. And with hedge funds their almost in a no lose situation. Buy an order of (pick your commodity ) then buy a hedge incase the crop fails. Either way they make money.
The reportage of our current state of food supply is harder to understand than a long form tax return. One article says that food prices in emerging markets will go up while another states that prices are stabilizing. And of course you have lying with statistics to contend with. In reading a few clumped headline links one will state that food prices are rising by 12% while another states that this week they fell by 2% over last week. So one wonders if the prices climbed by 10% this week or did they actually fall by 2%. Those who keep the stats sure are stinkers or is it those who control the news who spin it to make a buck. For the average consumer it's a matter of a trip to the grocery store to tell the real truth. The total at the cash register never lies.
Busy day for me and my net went down before posting this this morning. The usual friday pussy is busy eating before she herself becomes someone's dinner. Bank fails later.
FEB 19 Update:
Four banks have hit the skids this week 2 in CA and 2 in GA.
All I can say is Wow I've been following these bank fails for quit awhile and this is looking a bit like the 1980s and the S&L mess. Just wondering when they'll be all consolidated into two or three big banks. And you thought there were monopoly laws to prevent that sort of thing. Now they hold your money for ransom as in "give us a monthly fee and we'll let you keep your money in our bank".