We received an update from the fields from our “road warrior” John K. Here is what he writes about the field and crop conditions he is seeing right now.
John Writes:
Hi Kevin…here is the crop info as seen from my truck window going up and into central Michigan….
Lots of variability in the crops from farm to farm. Thousands of acres of corn and beans that looked just great from the road as you passed by…not able to see into the center of the fields. Then, an overpass gives you a view not seen from flat ground. Lots of open, bare ground w/ no crop surrounded by 6 inch yellow corn stalks that grow up and change color as the open hole expands outward.
Beans give you the same picture lots of times. Many times a re-plant is visible…with many of those drowned out.
Going around the South end of Lake Michigan…lots of flooded areas are plainly visible…too many 2–3–4+ inch rain storms. Going into Michigan, a lot of farm ground showed no crop…too wet to plant, or even get last years fall tillage work done. Saw one field that still had last years corn crop in it.
Many farm fields had 2 to 6 inch beans…planted in clean ground.
Saw more than a couple corn fields in Central Michigan with 2 foot to 6 foot corn…taken over by weeds that were as tall or taller than the corn. Other corn and bean fields with 2 to 5 foot crops of cat tails in most of the water holes.
The storms that pounded Milwaukee and Chicago last week…came right across Lake Michigan and drenched many parts on Michigan.
Only had the opportunity to speak with one cash renting farmer, he said he will probably break even with this years crop. That means he’ll work for free. OUCH!!
I’ll be going to Milwaukee in one week. I’ll let you know what I see.
KTI Road warrior .. John K, Peoria Illinois
Thanks as always John for your boots on the ground insight, I look forward to being out there with you come harvest time this fall.
Also, several of our other positions such as sugar, have been moving swiftly into profit territory. Your March Sugar call has gone about 40%+ and the October (which was almost down to -90% has now just about back to break-even and possibly ready to go profitable, an amazing recovery in a very short time.
Both the October Sugar and the Canadian Dollar trades are losing time value quickly though. Remember the October sugar options go “off the board” in early September. So time is of the essence. It is also a reminder of just how quickly commodities options can move.
Also, the Canadian Dollar position is offering us an opportunity to recoup some equity and this trade is at critical resistance levels. Take a look.
We always need to balance risk reward and some equity is better then no equity on a trade, especially with time this short. We will keep you posted.
Be on the lookout for any trading updates as well as other big announcements about our new media and educational products and partnerships aimed toward the commodities and resource investor who wants to take charge of their own financial destiny, all this and more from KTI next week.
Have a great weekend!
For Media Bookings & Broadcast in the US & Abroad, Please contact Karen Terwilliger at media@kerrtrade.com 203-559-7247 or 203-403-2552
[2]The economic rise of China and its burgeoning urbanized middle class means that the nation of over 1 billion people will face serious challenges unlike any other country. The main problem is pollution.
China just passed the United States as the world top energy consumer. This hasn’t been the biggest concern for the Chinese, however, as the population grows wealthier and its drive for resources grows, the pollution problem can no longer be overlooked.
The mining and energy sectors of the Chinese economy have been able to produce under very little regulations, making Beijing one of the most polluted cities in the world. The runoff from mining operations, from coal to rare earths, has destroyed the water table. “Almost a quarter of China’s surface water remains so polluted that it is unfit even for industrial use, while less than half of total supplies are drinkable,” reported David Stanway[3], for Reuters.
China controls over 97 percent of the worlds rare earth supply. These various metals are used in hybrid car technology, as well as the magnets and other materials used in wind and renewable electrical generation technology. China can no longer claim that as a developing nation it should be exempt from regulating its industries and cleaning up its environmental impacts.
In regard to rare earth mining, China is considering consolidation of the various mining companies into four or five conglomerates. “Beijing wants to consolidate the industry and lower energy waste and environmental damage. Ironically, the rare earth mining business is one of the most energy-wasteful and highly polluting industries around. Think Chinese coal mining with acid,” stated Paul Denlinger[4], for Forbes.
By lowering export quotas on rare earths by 72 percent, China is hoping to encourage investment and production of wind and solar power. If this plays out, China will be in the driver seat for a green energy sector that is set to explode.
And why shouldn’t they set up their economy around this?
They have the minerals needed to produce the technology, and the population base to produce the products far cheaper than the rest of the world. They could clean up their own pollution problems, and make a profit on selling wind turbines, batteries and solar panels to the rest of the world.
There is of course risk involved with green technology, especially when western countries are facing massive debt issues, and the relative cost of oil and coal are far cheaper than renewable energy at this time.
If governments do begin to move even a small percentage of energy production to these renewable sources, and China is producing all the technology behind it, it may pay out big. Not only would the cost for numerous rare earths explode, allowing China to cash in on their monopoly in the market, but they will also profit from the sale of finished green energy solutions.
Mining Company News
Bolero Resources Corp. [CVE:BRU[5]] announced rare earth elements in soil grids on its ‘Carbonatite Syndicate’ claim. “Concentrations for Cerium (Ce) and Lanthanum (La) ran up to up to 631 ppm and 377 ppm respectively, with 20 samples showing total Rare Earth contents above 1000 ppm. Pathfinder elements such as Niobium (Nb) and Barium (Ba) also show distinct elevated concentrations against background, proving their applicability for local exploration,” stated the press release[6]. These results are only a very early exploratory phase, so mining on the site is still far off.
Rare Earth Metals Inc. [CVE:RA[7]] completed an airborne magnetic and radiometric survey of its Letitia Lake/Red Wine property. The survey identified “numerous high priority radiometric/magnetic anomalies have been isolated for follow-up, many of which are associated with known mineralized trends,” stated the press release[8]. The anomalies may be a precursor to rare earth ore on the property. Like most North American rare earth operations, the projected start date for mining is far off as companies are searching far and wide for economically viable claims.
China to Buy 15 Million Tons of Corn in `New Era,’ Council Says, Citing Li
By Luzi Ann Javier – Jul 26, 2010
July 26 (Bloomberg) — Pauline Loong, politics and policy risk analyst at CIMB Securities in Hong Kong, talks with Bloomberg’s Haslinda Amin about the trade relationship between China and the U.S. Loong also discusses China’s currency policy. (Source: Bloomberg)
China may import as much as 15 million tons of corn in 2015 as demand outstrips local supply and the country enters a “new era” of buying from overseas, the U.S. Grains Council said, citing Shanghai JC Intelligence Co.
Imports may total 1.7 million tons this year and 5.8 million tons next year, the council said, citing Shanghai JC Chairman Hanver Li. Even with normal weather, the second-largest corn consumer won’t be able produce enough to meet demand as incomes rise, the council said on its website, citing Li.
China’s reemergence as a net corn buyer may help to drive global prices higher. Imports of 5.8 million tons would surpass China’s previous record purchases in the 1990s, according to U.S. Department of Agriculture data. Corn is used to make animal feed, with demand rising as consumers buy more meat and dairy products.
“The natural market to supply China in the corn space is certainly the U.S.,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia said, referring to the top producer and exporter. “China buying is certainly something that’s going to be supportive for global grain prices.”
Corn has risen 8.5 percent since April 27, a day before the USDA reported the first corn sales to China by U.S. exporters of at least 100,000 tons since 2001. The December contract on the Chicago Board of Trade narrowed losses today, trading 0.2 percent lower at $3.8375 a bushel at 1:15 p.m. in Beijing.
‘New Era’
“Demand for corn in China is simply outstripping the country’s production trend,” the council’s statement said, citing Li, who spoke through an interpreter. “A new era of China importing corn is here,” Li was cited as saying. A phone call by Bloomberg News to the head office of Shanghai JC Intelligence today was not answered.
The Asian nation had been a net exporter of the grain in recent years, including last year, when it sold 172,000 tons, compared with purchases of 47,000 tons, according to USDA data. China’s corn harvest totaled 164 million tons last year, down 1.2 percent, the statistics bureau said in May.
China’s previous record imports totaled 4.29 million tons in the year to September 1995, according to data from the USDA. Imports of 5.8 million tons may make the nation the fourth- largest buyer, overtaking Egypt, according to the department.
Corn imports by China, the world’s most populous nation, may surge to 10 million tons in 2015, according to a forecast earlier this month from Akio Shibata, chief representative for trading company Marubeni Corp.’s research institute. The company is Japan’s biggest grain trader.
Meat and Eggs
China’s expanding economy is boosting demand for meat, milk and eggs because as incomes rise people buy more food, Li said, according to the council’s Global Update report, dated July 22. Li was speaking at the group’s 50th annual board of delegates meeting. The council develops export markets for U.S. harvests.
The country had reached a “turning point,” Shanghai JC’s Li was cited as saying, referring to the period when China becomes a regular importer. Bad weather this year had cut output, local prices were rising and stockpiles were dropping, Li said.
The rising demand for food in China offered “an excellent opportunity” for increased corn shipments, Thomas Dorr, the grain council’s president, said last month. China may buy as much as 1 million tons over the next 18 months, Dorr forecast.
China has been selling corn from state stockpiles this year to cool local prices for immediate delivery that have risen 8.8 percent, according to data from Shanghai JC. At the same time, the nation has stepped up overseas purchases amid concern that the year’s crop may drop after bad weather.
“For now, imported corn will be limited, and will have limited impact on China’s domestic market,” said Yu Xiaomeng, an analyst at research company Beijing Shennong Net. Domestic crops looked fine, even with some weather concerns, she said.
To contact the Bloomberg News staff on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net; William Bi in Beijing at wbi@bloomberg.net
———————
SUGAR
Dryness may overtake wet as sugar threat
Dryness may overtake rain as the bigger threat to sugar supplies, Rabobank has warned, even as forecasts of wet weather helped prices to a fresh four-month high.
Traders blamed forecasts of more rain at Brazil’s seaboard for a rise in raw sugar to touched 18.66 cents a pound in New York, the highest for a near-term contract since late March.
The wet weather poses to cause further hold-ups for the queues totalling more than 100 ships waiting to take on sugar in Brazil, the top exporter, by forcing ships to keep hatches shut, and so preventing loading.
“The big end customers, the Middle East, Far East and so on, all pretty much depend on Centre South Brazil for their sugar,” Thomas Kujawa at Sucden Financial said, referring to the country’s top sugar producing region.
“Buyers are having trouble getting the sugar out, and that is what people are reacting to.”
Yield hits
However, further ahead, dry weather may dent supplies by accelerating the seasonal decline in the Brazilian harvest, Rabobank analyst Andy Duff warned.
“Although July has brought several days of very wet weather, there remains some concern that dry conditions this year may impact cane yields both towards the end of this season and next season,” he said.
Furthermore, sugar beet crops in the European Union and Russia look set to fall short of early hopes, hurt by the drought which is slashing their farmers’ grain yields.
“Both [countries] are large importers,” Mr Duff said.
“Unless offset by improved production prospects elsewhere, these developments effectively increase the market’s vulnerability to any shortfalls in Brazilian and Indian production.”
The widespread expectations of a return of global sugar production to surplus, compared with demand, in 2010-11 was “vulnerable”, he added.
Crop revisions
The comments came as the Russia Sugar Producers’ Union lobby group warned that it might cut its forecast for domestic sugar output, blaming dry weather for slowing root development in beet crops.
In Brazil, Datagro, the sugar an ethanol analysis group, cut by 500,000 tonnes to 32.9m tonnes its forecast for sugar production in the Centre South, citing dry weather in May and June.
Plinio Nastari, the Datagro president, said: “The effects of the drought should start to become clearer from here out, especially with the late maturing cane that will be harvested from October through December. It is very underdeveloped.”
However, higher plantings have are raising hopes for India, where Uttar Pradesh Sugar Mills on Friday forecast that sugar production in Uttar Pradesh, the country’ top cane-growing state, would jump by 35% in 2010-11.
New York’s October raw sugar contract closed down 0.2% at 18.31 cents a pound, with white sugar for the same month closing up $0.50 at $559.20 a tonne in London.
——————–
GOLD
WEEKEND INVESTOR
July 23, 2010, 8:27 p.m. EDT Bullion buyers bank on gold coins
Precious metal glitters for investors seeking to hedge financial chaos
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Apart from a New York City phone book listing, gold dealer Manfra, Tordella & Brookes, Inc. does no advertising. Lights are on all day because the shop sits in a basement.
Yet MTB, as the firm is known, has never been busier. Every day, people find their way to the Manhattan store with one thing in mind: getting their hands on gold bullion coins, as soon as possible and as much as possible, before the financial Armageddon they fear renders the dollars in their pockets worthless.
Welcome to the world of bullion coin investing, a business that has soared alongside the popularity of gold despite its disadvantages. The world’s thirst for gold coins has risen more than sovereign government mints can quench it, with demand on track this year to outpace 2009, itself a record.
Bullion coin investing may cost you
Investing in bullion coins has risen alongside gold’s popularity, catering to a small subset of investors who want physical possession regardless of how much more they may pay. Claudia Assis reports.
The coin craze is part of gold’s growing investment allure, based on fears of currency debasement, inflation, a debt debacle in Europe, and rising debt levels in the U.S. But the boon has also brought the practices of some retailers in the industry to question, with at least two U.S. companies under investigation for allegedly misleading consumers.
Bullion run
Bullion coin investing caters mostly to a subset of investors who want physical possession of gold and regard anything else as lesser investments, no matter how much more they have to pay, ounce per ounce, over gold futures prices or the difficulties they are likely to face when unloading their bullion.
Long having captured the hearts of a few in the periphery of the investment world, gold has won over some of Wall Street’s elite. Investment stars such as Paul Tudor Jones, of giant hedge fund Tudor Investment Corp. and John Paulson, of Paulson & Co., all have invested heavily in gold in recent years.
Investing in bullion coins is not to be confused with investing in collectable coins, although both are manufactured and sold by mints across the world. Bullion coins are valued entirely for their metal content, not for their collectible value or the denomination hammered on them. For many, they are an affordable and portable way to invest in gold.
It’s no coincidence that May was one of the best months in recent memory for the bullion coin business, and gold in general. It was also the month that concerns about a European debt crisis reached their highest note, and gold hit its first nominal record high since December.
“It’s been unbelievable. May was phenomenal,” with June sales and so far July a bit slower but still way above average, said Michael Kramer, one of the owners of MTB.
Precious-metals research firm GFMS estimated that 229 metric tons of gold coins were sold in 2009, up 22% from the 187 metric tons of 2008 and almost 70% from the 135 metric tons that moved in 2007.
“It looks as though we are going to surpass 2009,” said Phillip Newman, research director of the U.K.-based firm.
The U.S. mint ran out of some bullion coins last year and in 2008, and the Austrian mint added a third shift to catch up on their stocks. In his Manhattan store, Kramer caters to about 45 coin buyers a day, up from fewer than 10 a day in previous years, as the firm’s forte is wholesale.
MTB is one of only eight authorized firms in the U.S. able to purchase U.S. Mint bullion coins directly and sell them to coin shops nationwide and abroad. The U.S. Mint does not sell bullion coins to the public, as it does with commemorative and other coins.
Europe’s Week Ahead: BP and Shell report
European markets will get their first chance to react to the bank stress tests, with the latest earnings from BP, Royal Dutch Shell, Deutsche Bank and UBS all likely to be closely watched.
In addition to the new swarm of retail customers, MTB saw heightened interest from European coin retailers. “They couldn’t find enough coins in Europe, and they were buying from us.”
The Austrian mint, which, alongside Canada’s mint and the U.S. Mint is a top mint by sales, had to add a night shift to its two day shifts to counter delivery delays of two to three weeks and depletion of stocks.
“We did run out of stocks, we were living off our daily production.” said Kerry Tattersall, director of marketing at the Vienna-based mint. The third shift was recently discontinued after the mint built up its inventory.
Risky insurance
Ongoing fears about the pace of the global recovery have only given gold more momentum, with futures prices hovering just below $1,200 an ounce and the consensus looking for $1,300 an ounce before the year is out.
Gold coin buyers already pay $1,300 and beyond for their morsel of shiny metal. Premiums for coins are around 5% to 10% for one-ounce coins, and higher for lesser-weight coins.
In contrast, gold bars, which are cheaper to produce, carry premiums half as expensive. In gold investing, the premiums for coins are only higher than premiums paid for jewelry, where prices also reflect fashion, artisanship, and other factors.
“Coins are unable to give you the most bang for your buck,” said Jon Nadler, an analyst with Kitco Metals Inc., a dealer of coins and other bullion products. “Secondly, you are going to have questions about liquidity … it’s not going to be as easy as you think to sell them.”
Coin owners are also exposed to total loss in case something happens with their storage arrangements, Nadler said. Even bank safes are not covered in case of catastrophes and physical damage to the buildings that house them, to say nothing about the danger of home burglaries.
The financial breakdown scenarios invoked by some die-hard gold coin and bar buyers also don’t work for Nadler. With the collapse these scenarios envision, “you probably need lead, not gold. And who’s going to make you change?”
Gold watch
Most buyers are not concerned with small change or exit strategies. Some people sell their coins to raise emergency cash, but most are in for the long run and eschew the ups and downs of the futures markets and exchange-traded funds, which are “paper gold,” said Parker Vogt, owner of Camino Coin, LLC, a retailer in Burlingame, Calif.
In recent months, two Southern California coin retailers have drawn attention for the allegedly high premiums charged to customers and their sales tactics.
Earlier this week, Santa Monica’s City Attorney’s Office announced an investigation into Goldline International and Superior Gold Group, both based in the city, after receiving dozens of complaints in the past two months. The city said the Los Angeles County District Attorney’s Office is also involved and the investigation is in its early stages.
In May, Rep. Anthony Weiner (D-N.Y.) requested that the Securities and Exchange Commission and the Federal Trade Commission investigate Goldline, a frequent cable television advertiser. The agencies haven’t yet responded.
Weiner accused the company of high-pressure sales tactics “and tall tales about the future of gold to sell overpriced coins that can be bought somewhere else for cheaper,” according to a report produced by Weiner’s office. The average Goldline markup was above 90% the melt value of the coin, the report said.
Goldline executive vice president Scott Carter said in a telephone interview that the company takes the complaints made to the City of Santa Monica seriously, but they represent only a fraction of Goldline’s thousands of transactions.
Congressman Weiner’s contention of price gouging is also unfounded, he said, as Goldline charges premiums of 35% for its highest-priced collectible products and the average 5% to 10% for bullion coins.
“The allegations are inaccurate,” Carter said of Weiner’s report. Clients are offered “comprehensive” disclosure documents and must review a risk information package before doing business with Goldline, he said. The company has a seven-day, full-refund policy, one of the most generous in the industry, he added.
At Superior Gold Group, Managing Partner Bruce Sands said in an email that he was “not aware” of either Santa Monica’s or Los Angeles County’s investigations.
“We have a full compliance department which is a third party verification,” Sands said.
“We record every call to make sure any decisions made by a potential client is documented,” he added. “Potential and current clients call the Superior Gold Group of free will with concerns about economic market conditions and look to precious metals as a hedge for diversification. We also have any and all clients sign an account agreement that outlines our terms of service to process their order(s).”
There are alternatives to coins, even for those willing to pay the premiums for physical gold. A few companies offer vault storage for bars purchased, and the Perth Mint sells gold certificates, with the metal sitting in vaults in Western Australia.
Some exchange-traded funds also offer physical gold, including SPDR Gold Shares (CONSOLIDATED:GLD) , iShares Comex Gold Trust (CONSOLIDATED:IAU) , ETFS Physical Swiss Gold Shares (CONSOLIDATED:SGOL) and Sprott Physical Gold Trust (CONSOLIDATED:PHYS) though actually taking delivery can be costly. See related story.
For some, the portability of coins is their best feature. Kitco’s Nadler recalls buying gold coins from Iranian and Vietnamese refugees in Southern California.
The ability to buy less than one ounce is also a big draw. A similar coin craze swept the world in 1999, as some feared a social breakdown — and inoperative ATMs — caused by the Y2K bug.
Yet there’s no denying that, for many buyers, tangible coins simply carry an emotional appeal. If customers are investing a big chunk of their money, MTB’s Kramer said, “they want to see what they are getting. They don’t want to see a piece of paper.”
A Resource Trader Rewind video from January 2nd, 2007 Kevin talks about gold setting up to explode higher, p.s. This is when gold was at $640 or so, those were the days. Watch Here!
The concept of inflation has been around since the beginning of time. Inflation is a rise in the general level of prices of goods and services in an economy. Inflation can be measured in any time period, but it becomes noticeable over a longer time frame when looking at prices.
There can be daily inflation when hyperinflation is in full effect, and this has happened in many South American and African countries. When there is hyper inflation good and services are re priced on a day to day basis. It can get so bad that employers will pay people intraday so that they can buy goods during their lunch break because the prices might be rising so dramatically.
Currency and inflation go hand in hand. The amount of a particular currency you posses will determine your buying power. If prices start to rise because of inflation the currency you have in your bank account will not buy you as much as it did. The opposite is true when there is deflation. When the cost of goods and services start to decline your currency will buy you more.
There is a fine line between too much inflation and deflation. Economist will often have different opinion on where a good medium might be. Most feel that a small steady rate of inflation is best as compared to zero or negative inflation. When inflation rises, hard assets like real estate and gold will become more valuable. Your buying power will be less for items like clothes and food, but is offset if you own hard assets.
The cause of inflation is usually an increase in the money supply. In today’s economic environment the government is pumping money into this supply, trying to stimulate economic growth. They government can do this by selling debt in the form of United State Treasury Bonds and Bills. If no one wants to loan us the money, the Treasury department will simply buy its own bonds, this is basically like printing money.
If there is more money pumped into the system each unit of currency should theoretically be worth less because there is more of it. You will then need more of it to buy the good and services in the economy.
At the moment the inflation rate has remained zero to negative, even as the government is pushing money into the economy. This is because the money being put into the economy is being used by the banks and people to pay down debt. Since there were big losses incurred during the middle part of the decade, the money supply is going to pay down these losses.
If the money was going directly into the pocket of people, and they would be spending it, then there would be more signs of inflation. Employers are not paying more either in the current environment. Wage increase is also a sign of future inflation, so when wages start to increase, inflation might be down the road.
The countries in the world today that have less national debt will be in far better shape than those who have issued bonds to pay for their debt problems. The more smoothly the economy is working the higher the interest rate will be. The higher rate is because the government is not trying to stimulate the economy, just trying to maintain an environment where there is very low inflation.
Any investor can look at forex currency charts to gauge the strength of a countries economy. When the currency is lower versus other currencies investors can assume the country is experiencing low growth and the government is trying to stimulate spending.
Investors will put their money into a currency that is appreciating because the country is more than likely raising interest rates to combat too much growth. Investors are always looking for the best yield, and the countries economics and money supply play an important role in money management decisions.
These numbers are getting hard to even fathom. When will the madness end, if we don’t wake up as a country and take action, the United States will not survive another 25 years. WAKE UP AMERICA.
White House predicts record $1.47 trillion deficit
By ANDREW TAYLOR, Associated Press Writer Andrew Taylor, Associated Press Writer Fri Jul 23, 3:12 pm ET
WASHINGTON – New estimates from the White House on Friday predict the budget deficit will reach a record $1.47 trillion this year. The government is borrowing 41 cents of every dollar it spends.
That’s actually a little better than the administration predicted in February.
The new estimates paint a grim unemployment picture as the economy experiences a relatively jobless recovery. The unemployment rate, presently averaging 9.5 percent, would average 9 percent next year under the new estimates.
The Office of Management and Budget report has ominous news for President Barack Obama should he seek re-election in 2012 — a still-high unemployment rate of 8.1 percent. That would be well above normal, which is closer to a rate of 5.5 percent to 6 percent. Private economists don’t think the unemployment rate will drop to those levels until well into this decade.
The gaping deficits are of increasing concern to voters. But Obama and Democrats controlling Congress are mostly taking a pass on deficit reduction this year as they await possible recommendations from Obama’s deficit commission.
While there’s a slight improvement in the deficit for the current year, next year’s predicted $1.42 trillion worth of red ink — that’s 37 cents of borrowing for every dollar spent — is looking worse. It’s about $150 billion more than previously predicted, because of still-slumping tax revenues.
White House budget director Peter Orszag said the numbers represent a “fiscal situation that requires attention.”
Deficits have skyrocketed since the recession took hold in 2008 and Congress responded with a massive bailout of the financial system and last year’s $862 billion stimulus measure.
___
Associated Press writer Jeannine Aversa contributed to this report.
From a Commodities Watch Subscriber Mel K. Thanks Mel
Subject: Food for thought
This teacher is truly a genius!
An economics professor at a local college made a statement that he had never failed a single student before, but had once failed an entire class. That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.
The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.
All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A….
After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.
The second test average was a D! No one was happy.
When the 3rd test rolled around, the average was an F.
As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.
All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed.
Could not be any simpler than that. (Please pass this on)
Remember, there is a test coming up. The mid-term election in 2010!
Well no matter what your opinion on the stuff below, give it a read anyway….This was sent to me by one of my passionate readers and I do have to say, it’s quite disturbing….I am not saying I agree with al of it but much of it seems quite disturbing. How about this joke “How many CZAR’S does it take to screw up a country” ????
From a CW reader: George S.
Stunning……
There are very few of us who know just what all the CZAR’s do up in D.C…………….Here is their names and job descriptions…….should be educational to ALL AMERICANS…………no matter what your political agenda…….if you resent this list, then get angry at the one who put these characters on the payroll. And not at the one who posted it here…
Land of the CZAR’S….I had to check my passport last night just to make sure I was still American…
OBAMA’S “CZARS”– Read who they are and realize what they want to do.
Richard Holbrooke
Afghanistan Czar
Ultra liberal anti gun former Gov. Of New Mexico. Pro Abortion and legal drug use. Dissolve the 2nd Amendment
Ed Montgomery
Auto recovery Czar
Black radical anti business activist. Affirmative Action and Job Preference for blacks. Univ of Maryland Business School Dean teaches US business has caused world poverty. ACORN board member. Communist DuBois Club member.
Alan Bersin
Border Czar
The former failed superintendent of San Diego . Ultra Liberal friend of Hilary Clinton. Served as Border Czar under Janet Reno – to keep borders open to illegal’s without interference from US
David J. Hayes
California Water Czar
Sr. Fellow of radical environmentalist group, “Progress Policy”. No training or experience in water management whatsoever.
Ron Bloom
Car Czar
Auto Union worker. Anti business & anti nuclear. Has worked hard to force US auto makers out of business. Sits on the Board of Chrysler which is now Auto Union owned. How did this happen?
Dennis Ross
Central Region Czar
Believes US policy has caused Mid East wars. Obama apologist to the world. Anti gun and completely pro abortion.
Lynn Rosenthal
Domestic Violence Czar
Director of the National Network to End Domestic Violence. Vicious anti male feminist. Supported male castration.Imagine?
Gil Kerlikowske
Drug Czar
devoted lobbyist for every restrictive gun law proposal, Former Chief of Police in Liberal Seattle. Believes no American should own a firearm. Supports legalization of all drugs
Paul Volcker
E conomicCzar
Head of Fed Reserve under Jimmy Carter when US economy nearly failed. Obama appointed head of the Economic Recovery Advisory Board which engineered the Obama economic disaster to US economy. Member of anti business “Progressive Policy” organization
Carol Brower
Energy and Environment Czar
Political Radical Former head of EPA – known for anti-business activism. Strong anti-gun ownership.
Joshua DuBois
Faith Based Czar
Political Black activist-Degree in Black Nationalism. Anti gun ownership lobbyist. WHAT THE HELL DOES A FAITH BASED CZAR DO???????????
Cameron Davis
Great Lakes Czar
Chicago radical anti business environmentalist. Blames George Bush for “Poisoning the water that minorities have to drink.” No experience or training in water management. Former ACORN Board member (what does that tell us?)
Van Jones
Green Jobs Czar
(since resigned).. Black activist Member of American communist Party and San Francisco Communist Party who said Geo Bush caused the 911 attack and wanted Bush investigated by the World Court for war crimes. Black activist with strong anti-white views.
Daniel Fried
Guantanamo Closure Czar
Human Rights activist for Foreign Terrorists. Believes America has caused the war on terrorism. Believes terrorists have rights above and beyond Americans.
Nancy-Ann DeParle.
Health Czar
Former head of Medicare / Medicaid. Strong Health Care Rationing proponent. She is married to a reporter for The New York Times.
Vivek Kundra
Information Czar
Born in New Delhi , India . Controls all public information, including labels and news releases. Monitors all private Internet emails. (hello?)
Todd Stern
International Climate Czar
Anti business former White House chief of Staff- Strong supporter of the Kyoto Accord. Pushing hard for Cap and Trade. Blames US business for Global warming. Anti- US business prosperity.
Dennis Blair
Intelligence Czar
Ret. Navy. Stopped US guided missile program as “provocative”. Chair of ultra liberal “Council on Foreign Relations” which blames American organizations for regional wars.
George Mitchell
Mideast Peace Czar
Fmr. Sen. from Maine Left wing radical. Has said Israel should be split up into “2 or 3 ” smaller more manageable plots”. (God forbid) A true Anti-nuclear anti-gun advocate
Kenneth Feinberg
Pay Czar
Chief of Staff to TED KENNEDY. Lawyer who got rich off the 911 victims payoffs. (horribly true)
Cass Sunstein
Regulatory Czar
Liberal activist judge believes free speech needs to be limited for the “common good”. Essentially against 1st amendment. Rules against personal freedoms many times -like private gun ownership and right to free speech. This guy has to be run out of Washington!!
John Holdren
Science Czar
Fierce ideological environmentalist, Sierra Club, Anti business activist. Claims US business has caused world poverty. No Science training.
Earl Devaney
Stimulus Accountability Czar
Spent career trying to take guns away from American citizens. Believes in Open Borders to Mexico . Author of statement blaming US gun stores for drug war in Mexico .
J. Scott Gration
Sudan Czar
Native of Democratic Republic of Congo . Believes US does little to help Third World countries. Council of foreign relations, asking for higher US taxes to support United Nations
Herb Allison
TARP Czar
Fannie Mae CEO responsible for the US recession by using real estate mortgages to back up the US stock market. Caused millions of people to lose their life savings.
John Brennan
Terrorism Czar
Anti CIA activist. No training in diplomatic or gov. affairs. Believes Open Borders to Mexico and a dialog with terrorists and has suggested Obama disband US military A TOTAL MORON!!!!!
Aneesh Chopra
Technology Czar
No Technology training. Worked for the Advisory Board Company, a health care think tank for hospitals. Anti doctor activist. Supports Obama Health care Rationing and salaried doctors working exclusively for the Gov. health care plan
Adolfo Carrion Jr..
Urban Affairs Czar
Puerto Rican born Anti American activist and leftist group member in Latin America . Millionaire “slum lord” of the Bronx , NY. Owns many lavish homes and condos which he got from “sweetheart” deals with labor unions. Wants higher taxes on middle class to pay for minority housing and health care
Ashton Carter
Weapons Czar
Leftist. Wants all private weapons in US destroyed. Supports UN ban on firearms ownership in America .. No Other “policy”
Gary Samore
WMD Policy Czar
Former US Communist. Wants US to destroy all WMD unilaterally as a show of good faith. Has no other “policy”.
The cocoa market has been wild lately and CW subscribers have been riding the wave using options spreads. More on the reasons for the sharp movements here. Story from the BBC. KK
I am so pleased with our outstanding December Cocoa Option Spreads in Commodities Watch that we added back in mid may on the lows, way ahead of the game. Now because of what is happening in cocoa, the late comers are pushing the price to the moon…. I expect that to move even higher as the front month contract expires. We always like to be proactive not reactive…Look at this excellent chart I pulled up today.
So CW Members stay sharp for a trading alert to grab at least half profits. If you’re not a CW member, well we wish you were.
More info available at www.kerrcommoditieswatch.com
Read more about why this is happening in cocoa right now….
From our friends at “Zero Hedge” and others.
Phibro Takes On Willy Wonka: Chocolitango In The Futures Market Reeks Of A Physical Squeeze Attempt
Submitted by Tyler Durden on 07/17/2010 13:21 -0500
“It appears that a Phibro/Buffett-inspired attempt to corner a commodity market is in progress. Amusingly (or not so much for chocolate mousse cake makers), it is occurring in the relatively compact and illiquid cocoa market, where the WSJ reports ten brokers (mainly BNP Paribas) took possession of more than 240,000 tons of cocoa, valued at as much as $1 billion, leaving just 6,710 tons available for purchase. The Telegraph adds some further color: “The cocoa beans, which are sitting in warehouses either in The Netherlands, Hamburg, or closer to home in London, Liverpool or Humberside is equivalent to the entire supply of the commodity in Europe, and would fill more than five Titanics. They are worth £658 million.” This is nothing less than an attempt to squeeze existing shorts, with an emphasis of the on the run, July contract. Indeed, the backwardation between July and September has surged to 11%, even as the settlement price on the continuous front-month, closing at $3,165, approaches all time highs: “Thursday, cocoa for July delivery settled at £2,732 ($4,221) a metric ton. Friday, the new front-month contract, for September delivery, rose 1% to £2,445 a metric ton.” And that’s not all: “Already, cocoa for September delivery is trading at a big premium to December cocoa, sparking talk that another run on inventories may occur when the September contract expires.” In other words, with half of America beckoning diabetes with open arms, a rather sharp bout of inflation is about to be felt for all those whose daily calorie intake is over 2,000. Incidentally, this is precisely the kind of action that would happen if and when someone had the urge to pull a Buffett and send the price of gold and silver through the roof (and destroy JPM and the LBMA in a matter of hours).
From the Telegraph:
Eugen Weinberg, an analyst with Commerzbank, said: “For one buyer it would likely be a little bit too large. It would be a crazy number. That said, if you’re cornering the market …”
“If it looks like cornering, feels like cornering and the price difference between Europe and the US is so large, it probably is cornering.”
“There is some play taking place. No one really knows what is going on.”
Andreas Christiansen, president of the German Cocoa Trade Association, said the “hefty” price move was “a mirror of what can be done if people control the physical stock”.
Cocoa prices, which had been on the rise this year, rose 0.7 per cent yesterday, to £2,732 per metric ton. By contrast, cocoa being traded on the US exchange fell.
This is the highest price for cocoa in Europe since 1977, and comes after a series of weak harvests in Ghana and the Ivory Coast, the main areas where the crop is grown. Fears of floods in the Ivory Coast have sent prices even higher, as speculators have bet on another poor harvest, and a shortage of supply.
All those craving Viennese mocha will likely see a doubling prices imminently:
There are fears that the extraordinary activity on the commodity markets will filter down to higher prices on the shop shelves for the nation’s favourite chocolate bars, even milk chocolate, which has only 25 per cent cocoa content.
The WSJ adds:
End users of cocoa, such as confectioners, have been reluctant to replenish supplies amid high prices. Now, they may have to, said Andreas Christiansen, chairman of the German Cocoa Trade Association, a trade group that represents 28 members of the cocoa industry.
Of course, this being pure speculative manipulation, only a handful of hedge funds and prop desks will benefit, even as prices go up, without benefit to the end suppliers:
Barbara Crowther, a spokesman at the Fairtrade Foundation, said that no farmers in West Africa would benefit from the higher prices. She said: “This speculation only serves to increase volatility and uncertainty. Part of the problems in rent years have been the lack of investment in improving cocoa farms. But the farmers have already been paid a set price – none of this money will filter down to them.”
Naturally, the CFTC sees no problem with this, just as it sees no problem with position limits, and the ability of 10 brokers to corner 99% of available physical market.
Trade groups have criticized the exchange because it hasn’t implemented limits on the number of contracts a single trader can hold, which in the U.S. is regarded as a key check on participants’ ability to manipulate prices.
While the cocoa market is small and relatively unpopular within the speculative community, it is only a matter of time before this action is repeated for increasingly more popular and liquid products, until it finally strikes the tungsten motherload, rusty or not: as Buffet did it successfully in 1997, there is no reason to believe the next generation’s physical squeeze play is not already in the works, especially with free money being so much more accessible these days, courtesy of discount window access for everyone.”
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