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View Diary: Economic Terrorism and Krugman's Latest: "The clear and present danger...is what is happening now." (267 comments)

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  •  Speculation does drive commodity markets (11+ / 0-)

    So the COMEX ups the margin requirement 84% and silver drops 30% from its April 25 high. The GSCI dives 6.5% in one day.

    Financial players driving commodity prices? Say no more!

    •  Financial players retreated to commodities (4+ / 0-)
      Recommended by:
      ohmyheck, 4Freedom, cpresley, raydog

      because it was cheaper and more stable (less risky) than actual investment.

      The retreat to commodities before and during the credit crunch was directly related to volatility and uncertainty in the currency market.  Betting on the continuing weakness of the dollar (as the Fed bailed out the banks that got us into the mess) allowed the wealthy to hide their wealth, play keepaway with the indigent, and ride out the storm while millions of hardworking families - teachers, police officers, builders - lost their homes and nest eggs.

      Stop clapping. Stop screaming. Open your mind. Listen.

      by Benintn on Fri May 06, 2011 at 07:44:20 AM PDT

      [ Parent ]

    •  And you have to know (1+ / 0-)
      Recommended by:
      cpresley

      That some players took huge short positions right before those margin requirements got pushed up.

      "Power concedes nothing without a demand. It never did and it never will." ~Frederick Douglass

      by ActivistGuy on Fri May 06, 2011 at 09:51:48 AM PDT

      [ Parent ]

    •  Yet there's so much deceit (0+ / 0-)

      distraction and distortion about the issue in the news media and in political discourse.  

      Both parties and the corporate news media are working diligently to downplay the role of investment schemes in rising food and energy prices.  Its stunning to watch it unfold. Every time it seems the truth will prevail, the "experts" parachute in and take over the messaging.

      It is the mark of an educated mind to be able to entertain a thought without accepting it. ~ Aristotle

      by Betty Pinson on Fri May 06, 2011 at 12:32:42 PM PDT

      [ Parent ]

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