Commodities Prices Crashing Worldwide! – Wall Street Underground

By Nick Guarino | August 13, 2008

Rarely in life do markets get this far out of whack. In fact, we have never seen so many commodities manipulated all at the same time and for such distorted prices. Up until recently, no one had the money to rig all the markets at once and no one would dare do it for fear of the regulators. What happened is that the now dead-broke banks — funded by derivatives and with regulators desperate to save the banking system — were given carte blanche. As a result, we have had the greatest commodity market manipulation ever in history.

Let me say something here and now. Any government regulator or banking official who doesn’t recognize the current commodities markets as being totally manipulated is either smoking crack or is on the payroll of the Wall Street mega-funds. But as this manipulation sputters to an end, it presents what could turn out to be the greatest money making opportunity to ever exist. Oil went over $150 a barrel! In the face of a global depression, gold soared over $1,000 bucks an ounce! Ridiculous! Cooper, platinum, palladium, steel, the whole industrial medals complex, soared to valuations that were not remotely plausible.

And these prices came about during the biggest bust in house sales and in automobiles in history — both major consumers of the metals. Finally, we got the insanity in the agricultural commodities. I loved the media spin on that one! Suddenly the supposedly newly rich Asians (actually working in sweat shops) tired of eating rice decided they wanted real food for real people and that meant that suddenly farmers had to produce more steaks and pork chops and so, presto, that explains why suddenly corn and soybean prices have quadrupled in a year. Give me a break! No one ever did explain to me why, if all of Asia was abandoning white rice in favor of Kentucky Fried Chicken and Burger King, rice also did a moon shot? It would seem to me that if they were giving up rice in favor of meat then rice consumption would drop.

Well, to make a long story short, the commodities manipulation in now over. Prices are falling for just about everything on the planet. Now it’s time for the bust. In my opinion at least, there will be a bust in oil, gold and just about every metal and food commodity imaginable. Without a doubt in my mind the greatest commodities manipulation the world has ever seen is coming to a screeching halt. As usual, Wall Street pushed things too far. It’s as predictable as gravity. Every manipulation ends like this: high prices kill demand and bring new supplies big time to market. When you add to that the fact that we are entering a global depression — talk about killing demand! — you can see why serious traders are so excited they can barely sit still. They could make billions as these commodities prices plummet.


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