hi although inflation "does not exist", prices in the food basket keep going up. so is gold the real barometer? on the radio they're saying chicken prices and other food stuff prices are going to go up. so it's time to buy chickens instead of gold?
Worse still, Molson Coors has announced that they're going to try and raise beer prices this fall and the NYTimes is running an article that says that, with the declines in energy pricing beginning to come to an end, food prices should begin to rise.
I wonder, to have rising prices you need just one thing--relative scarcity or the perception of scarcity. With all of the world capacity that we have to produce chickens, hogs and cattle one wonders how we achieve that. And, and I underline and, our own gentleman farmer JB is up to his waist, as we type, with soybeans.
Incidentally, JB, you must be eating those things yourself, but if you aren't yet, youngish green soybeans blanched in the pod for maybe a minute in boiling water and salted are some of the tastiest snacks known to modern man.
Early indications are for a lower US open despite robust worldwide markets. All of Asia was up and all commodities were up overnight but that situation has changed as we approach the open in the US. Europe could be the issue as most bourses there are looking sickly this am. Oil is off another 30 cents in electronic trading after having been up slightly overnight. Inventory data could change all of that at 10:30, of course. The 10Y is trading at 3.44 which is also not a good sign. It must most likely mean that the $USD is up a tad this AM after an unch yesterday. JB could comment, but it sure looks like another little mini-bottom in the greenback at 78 which would mean a higher low after a higher high. But that nasty old fitty is right up above at 79.25 looking threatening as ever.