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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: surfbaron who wrote (4714)	8/17/2002 10:41:02 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

Surfer, commodities will become a major puzzle for media glut of commodities? no way methane gas? critical shortages mounting crude oil? API just reported very large comedown last week grains? drought in MidWest last week saw 8% price rises commodities surely see lower demand during recessions but as with beverage/ food/ hygiene products, which are considered the safer consumer sector for the general stock market, commodities enjoy a steady baseline demand since they are often buoyed as NECESSITIES in life (their demand is supported by govt welfare programs!!!) in most instances, commodity markets have far far more government and regulatory obstacles involved in the supply chain than the "regular economy" then also govt and regs have mindless (but politically acceptable) price ceilings nowhere is this seen more evidently than in California but the response to electricity shortages in 2000-01 will result in much more of the same in neighboring states why? because of economic ignorance and liberal dominance in political circles now in Arizona and Oregon, they are instituting similar price ceilings, as they moronically blame Calif problems on bigwhig Enron "thieving outsiders" if California Governor appeals for federal help in securing little Oregon's power, who wins? the cause of the problem or the innocent neighbor? Calif, the cause wins and spreads its problem outward it is my sincere belief that our economic mess will be turned into a disaster because of poor leadership and stupid policy decisions no demand for commodities? check gasoline stations for the masses everyday check home air conditioning everywhere in the summer check electricity in homes and businesses and public buildings check photo finishers for silver consumption check home building, home repair, electrical anything for copper check supermarkets for bread, corn, (and in Calif) soy tofu check coffee mugs, sugar bowls, orange juice in the mornings check the slow mega-trend migration into gold as scared capital is deserting financial markets we may have an economic slowdown, or stall but as Puplava points out, commodities largely address the necessities demanded by world consumers and most commodities beyond food/grains are produced outside the United States e.g. oil in Canada, MidEast, and North Sea e.g. copper, silver, gold in SoAfrica, SoAmerica the generality which is 80% in my opinion, is that commodities rise in price as the USdollar declines, since production occurs outside our country then you have the other financial markets effect I wont get into that so much here the path of least resistance for financial investors is now with commodities the horrible oversupply is with tech products, telecom products, cable/other media, infotech pipelines, and all manner of production within the credit-based debt-ridden "other side" of the economy which is now suffering like never before since 1930 the appeal of commodity investments has much to do with its basis in HARD ASSETS I would rather own an oilfield or a metal mine or a grain silo (unencumbered by whopping debt) than a leveraged stock issue in technology, telecom, or media et toi, mon ami? let's call a spade a spade Greenspam destroyed the real economy as punishment for the stock market accepting easy credit to create THE GREATEST ASSET BUBBLE IN THE HISTORY OF MANKIND we really need a monetary policy for the stock market !!! and another monetary policy for the economy !!! now prepare for a gradual deterioration into ... THE GREATER DEPRESSION as politicians and unelected policymakers compound the problems with serious errors world capital markets will retreat into the safety and security and incredible promise of commodities, led by GOLD in lieu of MONETARY IMPOSTORS just like the past 5000 years of history / jim