US$ is still in support mode as the strangeness continues with the dollar up 17.1 points with the trade at 83.645 after reaching a height of 83.740, Treasuries have been lifted as well with the entire sector pushed to the brink of zero return. Energy Sector is a bit confused this morning as well with Crude Oil down 40 cents at $86.70 but the rest of sector, Reformulated Gas, Heating Oil, Natural Gas, trading higher. Gold continues to get punished with the trade down $7.10 at $1,584.90 close to its “made just for you in the early morning” low of $1,582.10, Silver is following suite with its trade at $27.065 down 30.4 cents with its low at $27.020 guiding the rest of the sector down as well. All Grains are ignoring the climbing fiasco called the dollar with sharply higher prices across the board. Softs are strong as well with Cotton the only exception, Meats are closed till Chicago kicks in and the Paper markets are flat to lower in the earliest morning report. The nightmare that rocked the world last Monday is still not understood in its purest of forms. That is, we are aware of the 100 to 1 ratio of paper to real products of Gold and Silver, but how far out is it when it comes to our food products? Not too many people understand the importance of the commodity industry, not even the bankers or its governing bodies it seems. If these large farming/ ranching/poultry/ smelting/ shipping industries can’t protect themselves against adverse affects caused by “Acts of God” (weather) or surprised shortages in the raw materials needed to support the human side, then the worst case scenario might have to be considered. If there is no strict rule of law applied to our commodity sector, then one might as well forget the Stock Market and all its industries, because there won’t be much of an industrial base or food sector left to buy or sell. The reasons for the commodity industries creation in the first place was to have a single location for producers and buyers to transact swaps, that is products for money. I’ve never thought we could get to a point like this ever! Is it possible that this failure to control the madmen at the top actually cause a multinational starvation effect? Consider the doubts here; right now the focus is on our own capital loses. But how badly affected are our farmers/ ranchers if there’s no one on the other side of the sale/purchase? Sure at first there might be some bargains, but the long term affects could spread internationally and affect everyone one way or another. Where would we buy energy products if there is no commodities markets especially in the dead of winter, how about foods when it’s no longer the growing season in one a country? These events where never considered because the transactions in commodities went smoothly for the past century. Trades are now globally wired together, so the affects will be global. We, as a nation of people governed by laws need to see a speedy clean up as soon as possible, otherwise, the worst case scenario could be a reality as one industry affects another, which affects another, and on down the line …. Stay Strong!!
Fort Wealth Trading Co LLC.
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