Prices Up/ Prices Down

Let’s see… What markets are showing firm & rising prices? Hmm, Olives, Anchovies, Capers, Tuna, Mandarins, and more… What makes these markets firm? Increase demand vs. available supply if I remember basic economics…

What markets are soft & declining right now with low demand and over supply?

The $US Dollar, folks….

The dollar is being sold cheaply because we have too many available and are printing more at a furious pace…

Here’s the global example of the effects of this thing… You have been hearing about the Barrel Price of Oil up at all time highs, right… Well think about it…. Today’s price is at just about $90 per barrel. In February 2006 we were at about $60 per barrel. That’s an appreciation of 50%!

In Euros with today’s rate of $1.445 to € 1 that $90 barrel is € 62.28. In February 2006 at the rate $1.20 to € 1, that barrel $60 barrel was € 50.00.

That appreciation is only 25% or HALF the US $ Rate…We are in an inflationary cycle now in the USA. The Federal Reserve Meeting, if they decide to lower interest again, will be throwing fuel on this fire.

Let’s see what happens…

But the long term issues remain. The mortgage crisis is only one symptom. Social Security, Health Care, Education are other symptoms of costs out of control.

But the elephant in the room is the drunken sailor like spending of the current administration 0n the “Global War on Terror”. The boondoggle in Iraq is now costing us $9,000,000, 000 per month ($9 BILLION). So far it has surpassed $455 Billion with another $155 Billion requested for f 2008.

That causes inflation my friends. Time to tighten the belt, keep interest at current levels (or do I dare say, raise it! Blasphemy!). Then we at least will be pointed in the proper direction to pay as we go…