CR GREATEST HITS©
The world is at the beginning of a 20 year run on commodities. Commodities are the new currency. Haven’t you seen the effects of poor economic planning as they relate to the commodities boom? (NEWS proof) The most basic commodities, such as corn, rice, and wheat have skyrocketed in price. Some have tripled. Poor economic decisions have driven the price and the demand higher and higher. By diverting as much as 30% of corn to bio-fuels, the U.S. has caused a famine situation in parts of the world. You will continue to see food prices go up and protests and riots continue. You cannot make decisions from greed that cannot have bad outcomes.
The manipulation of grain supplies for personal and corporate gain is something that should never have happened. People are starving for the most basic foods and all the U.S. government is concerned about is whether there will be enough ethanol for people to fill up their SUV’s. (NEWS proof) Bio-fuels will be one of the most disastrous decisions ever made by a government. Even when they become available, there will be limited places to buy them, and they will be as expensive or more expensive than gas. Other commodities are also being squeezed in many parts of the world. Some countries that were exporters of grains or metals have closed their borders to exports. Some of these countries were suppliers to the world for some of these commodities, and by halting exports; they have caused a ripple effect in the economies of many countries. All precious metals and grains and energy commodities will become the currencies of the future.
QUESTION: What will happen on the ethanol scene?
ANSWER: Bio-fuels will die a long slow death. Corporations and the government will try to keep them alive as long as people are making money on them. The switch to electric vehicles will snowball faster than anyone thought, and will be the final blow to bio-fuels.
QUESTION: When will the electric car become mainstream?
ANSWER: The electric car will be the choice of consumers for their second vehicle to drive locally. People will still buy combustion engine vehicles for longer trips. The advancements in batteries and charging in the next 3 to 4 years will allow electric cars to go 200 miles on a charge and recharge as they go.
QUESTION: Is the U.S. the only country pushing bio-fuels?
ANSWER: No, but other countries have converted to alternate food fuels, like Brazil and sugar. The U.S. has miscalculated the demand for bio-fuels. as well as the cost and have not figured in the distribution issues and the cost and distribution challenges will eventually kill bio-fuels. Electric vehicles will win out, since they are inexpensive to run, and the distribution is in place everywhere.
QUESTION: What will be the electric grid infrastructure of choice to support the electric cars?
ANSWER: The demand on the electric power grid will be met in several ways. You will see wind farms, solar farms, and hydroelectricity generation. Also, the vehicle will be able to recharge via solar panels on the roof and decks, and will also use wind as it travels and recharge from the brakes.
QUESTION: Please comment on the supposed manipulation of the precious metals markets?
ANSWER: We have spoken before about the coming scams in precious metals. Beware of anyone who sells you a piece of paper that they say is backed by any metals. As the price of metals surges, everyone will want to buy in and there is a finite amount of the metals.
QUESTION: What about the political manipulation of the precious metals?
ANSWER: The government manipulates the price up and down. For example, by keeping the price of gold down around $300 an ounce, the government was able to show a strong dollar policy a few years ago. Now the government allows a few large traders to control the gold and silver and tells them when to move the market.
QUESTION: What government are you referring to?
ANSWER: The larger governments of the world control the metals through the IMF and the World Bank. They lend or lease bullion back and forth without the ability to know where it all resides at any one time. This will mean that if you want to buy bullion, you will pay a premium.
QUESTION: When will they no longer have the upper hand on manipulating the precious metals markets?
ANSWER: The demand for precious metals will skyrocket out of control and the large manipulators will lose their grip on the supply and prices will triple.
QUESTION: When will this happen?
ANSWER: Over the next 4 years.
QUESTION: Over the next four years, how will the manipulation of other markets and societal controls change?
ANSWER: The world is in for radical change. The first will be a breakdown of the financial infrastructure that leaves many financial institutions in a non-liquid state. If they do not receive government help, they will declare bankruptcy, or will be bought by another financial institution of another country. The credit crisis will continue to have a negative effect on the middle class and the future of the credit markets. Financial institutions will all have a short list of who gets credit and who doesn’t.