One of the casualties of all this chatter about another round of funny money from the Monetary Masters of the Universe is the price of Unleaded Gasoline. Throw in a dose of tensions in the Mid-East on top of this, and you get a market that is clearly going to cause headaches for the Central Planners if they stupidly unleash another round of Quantitative Easing at the end of this month or early in September.
Consumers will soon be reeling from the effects of rising grain prices related to the worst drought in decades to have struck the critical corn and soybean growing regions of the US. The impact of this surge in grains is going to be most deeply felt later this winter and into early spring of next year as the poultry, pork and beef industry will have no choice but to pass this surge in feed costs along to the consumer. However, it will not take that long for the impact to felt as cereal, bread, pasta, etc, all start rising within the near future.
Consider this, the central bankers have not yet given the decided go-ahead for another round of bond buying and already we are watching the price of commodities moving ahead, right at the exact time that the US economy is on life-support, with its job creating engine having blown a gasket.
These meddling Central Bankers may feel it is their divinely-inspired purpose in life to create an environment of ever-rising stock markets, but in the process of so-doing, they have sown the seeds for the ruination of the middle class and have heaped another lead weight on those already struggling to barely get by.
Food and energy are the two essentials for modern life. They are about to get more expensive if Wall Street pressures the Fed and the ECB into another round of bond buying.
Take a look at the CCI Chart below. Notice that it has been in a downtrend since early last year. This time however it looks as if it is trying to change that. It is currently bumping up against an overhead resistance level near 565. Unlike the rally in July-Aug of 2011 and that of Jan-Feb of this year, which rallies prompty and abruptly fizzled out as prices then resumed a sharp fall, this latest rally is showing signs of "sticking" and moving sideways in more of a consolidation type pattern rather than a bear market bounce.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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