Whilst not terribly well written, this article presents the economic scenario I think is highly likely moving forward (unfortunately). That energy prices have already hyperinflated this year is fair evidence of what lies ahead. Never been a more compelling time to own commodities and particularly the agriculturals. YC
------------------------------------------------------------- The hyperinflation in commodities and credit squeeze create the recipe for financial meltdown v3.0 Joe Weinman Jun. 14, 2008
The third version of any software or anything is big and devastating. In Elliot Wave Theory, the third wave is the massive in terms of price changes. We face third wave of financial meltdown. Oil and food prices will skyrocket in the next several months creating the world wide depression never experienced before.
The new from Midwest America is scary. Grain prices will skyrocket in the next several months. The bio fuels will be scarce. That will in turn shoot the price of oil towards $200 a barrel. Expect $6 a gallon for gasoline before November 2008 election.
Sadly neither McCain, Bush or Obama have any clues how to tackle the world depression from the hyperinflation in oil and food.
Finance ministers from the Group of Eight nations said surging food and fuel prices have replaced the credit squeeze as the biggest threat to the world economy.
``The predominant concern is the inflationary effect that oil in particular and also food prices are having,'' U.K. Chancellor of the Exchequer Alistair Darling said yesterday after G-8 officials ended talks in Osaka, Japan. Deputy German Finance Minister Thomas Mirow said oil's rise to a record means ``an enormous withdrawal of purchasing power.''
Infrastructural changes have started working already leading to the depression. Small businesses all over US have started imploding into basements of the owners. There will be a massive lack of renters in office space. People are refusing jobs far away from their home. The energy and food inflation has started creeping to wage inflation.
The financial meltdown version 3.0 is about to start which will real devastate the economy. The stock market will crash below 7,000 (Dow Jones Industrial Average) and unemployment rate will rise above 10%. The banks will face severe runs one after the other. People will struggle to survive with skyrocketing heating costs, food prices and $6 to 7 a gallon gasoline.
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