Several readers flagged this: US grain reserves reach the bottom of the barrel. Here is a key quote: “The only thing left in the entire CCC inventory will be 2.7 million bushels of wheat which is about enough wheat to make 1?2 of a loaf of bread for each of the 300 million people in America.” Back in mid-April, I told a New York Sun reporter about the massive outflow of US grain, and mentioned that I was surprised that the Bush Administration has not implemented export controls. With these recent figures, I am even more concerned. I believe in free markets, but I’m a realist. At some point in the near future, the Bush Administration is likely to step in and stop the hemorrhaging wheat from the US. If you haven’t done so already, stock up on hard red winter wheat as soon as possible. By this time next year, wheat prices will likely double again.
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Israeli minister says alternatives to attack on Iran running out. (A hat tip to SJC, for sending that link.) Be ready for the full implications of war with Iran, if and when it comes. We can expect dramatically spiking oil prices (and shortages) and possibly some acts of terrorism by sleeper agents inside our borders. There will also likely be a spike in the price of gold. (Gutsy investors might consider selling a portion of their gold holdings at that time, and then buying back in, on a subsequent dip. As they say on Wall Street: “Buy on the rumor, sell on the news.”) Secondarily, there will likely be diplomatic discord with any countries with extensive economic ties with Iran, such as France.
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This CNN article on survivalism last month continues to gain attention, as it gets picked up by other new outlets: Survivalists get ready for global meltdown
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You might have noticed that last week Standard & Poors belatedly downgraded three of the big brokerage stocks. They now carry ratings that are nearly “junk.” The ostensibly “neutral and unbiased” S&P of course should have done this nearly a year ago, but there has been plenty of collusion going on. In my estimation the entire financial world is still in the early stages of a meltdown, which was precipitated by the credit collapse last summer. It is just happening in slow motion. The bottom is still nowhere in sight. I stand by my predictions, particularly for the hedge funds. In a collapsing credit environment, they are nearly all doomed. With each passing quarter, they may fall like dominoes.