RANTING ANDY – In the past month, global commodity indices have all soared to ALL-TIME HIGHS, courtesy of the easiest trade of all time, the 100% correlation between Central Bank money-printing and price inflation. Price inflation ALWAYS hits first in the items we NEED (such as food, energy, and insurance) and last in the items we WANT, such as housing (you can rent instead of buying), electronics, and other discretionary items.
Food prices are obviously the first to be hit, as food is THE MOST important commodity, with only GOLD and SILVER even in their league, given that Precious Metals have historically been the world’s primary bartering tool. Contrary to what the media tells you about “democracy” driving the Tunisian, Algerian, and Egyptian revolutions, the real reason is SOARING FOOD PRICES caused by unfettered money-printing by the world’s Central Banks, led of course by the U.S. Federal Reserve and it chief, “Helicopter Ben.”
In fact, if not for the egregious, premeditated attacks on PAPER gold and silver this month to try and distract investors from accelerating inflation, not to mention their new tool of influencing the printed price of WTI Crude Oil when the REAL global oil benchmark, Brent Crude Oil, is soaring past $100/bbl, the American media would already have been screeching about soaring inflation, which I assure you is on the cusp of taking center stage.
And, by the way, if you need proof that REAL Precious Metals demand is soaring, look no further than today’s announcement that U.S. Mint January sales of Silver Eagles were 6.4 million, shattering the November 2010 ALL-TIME HIGH of 4.7 million ounces by an astonishing 36%!
Nearly all agricultural commodities are at or near ALL-TIME HIGHS, but the grand daddy of the commodity world is undoubtedly rice, the nutritional staple of roughly half the world’s population. Rice prices are historically high, but have lagged this year’s commodity explosion until this week, when they exploded to new multi-year highs (see below).
When the soaring price of rice is recognized by the investor community, it will probably be too late as riots and revolution will likely start engulfing numerous other nations around the globe, including some that are a far greater threat to global economic and political stability than Egypt.
What I have warned of for so many years is fast coming true, and the only way to PROTECT YOURSELF will be to trade your rapidly depreciating dollars (and yen, Euros, Pounds, etc.) for REAL MONEY, i.e. gold and silver, as well as other ITEMS of real value such as food and other living necessities.