A Drought, An Election, And A Central Bank
The Election
6 November, Tuesday.
I have finally distilled the essence of my feeling about Obama. It would appear POLITICALLY INCORRECT NOT TO VOTE FOR OBAMA if I was an American. Voting for Obama would be akin to supporting gay marriage and boycotting Chick O Fil. It would look pretty cool to be supporting the underprivileged and we have to admit, since Obama got elected, alot of opportunities have sprung up.
We now have the most number of female CEOs in the Fortune 500 too. Younger politicans getting into Parliaments around the world. I like to think Obama showed us how.
Then I read this ominous piece.
“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising them the most benefits from the public treasury, with the result that a democracy always collapses over a loss of fiscal responsibility, always followed by a dictatorship. The average of the world’s great civilizations before they decline has been 200 years….” Source : http://www.zerohedge.com/news/art-cashin-new-normals-new-populism-165-million-state-dependents
Enlightenment ? Obama has made it politically incorrect to be rich! I like it.
Pity Clint Eastwood doesn’t think so despite that so-Obama Detroit ad (please click if you haven’t watched it) he did.
| Washington Post | Actor Clint Eastwood says he’s backing Romney because “country needs a boost” |
And if I were to be totally honest. This sums it up.
| 9-Aug-12 | Marc Faber : If I Had To Vote For Obama Or Romney, I’d Shoot Myself |
Am I trying too hard to be an intellectual bourgeois ?
The Drought
There is a drought in Midwest America which is expected to drive up the price of milk, beef and pork next year. I thought I would hedge with chickens and then I saw the chart of TYSON FOODS (TSN US). Chickens eat corn too and the corn harvest will the lowest since 1995 according to the USDA. Now even Tea prices have exploded.
Pity they cannot make chicken feed from Coffee, Sugar and Cotton. And its a real pity Corn and Wheat happen to be staples in many countries and now there is talk of food riots again.
I wrote this some weeks back A Hungry Man Is An Angry Man – Wheat and Corn. Al Jazeera published this a few days back, Food riots predicted over US crop failure.
I guess no one is thinking about it right now because it has nothing to do with the EUR/USD or the S&P500.
And The Central Bank
It does look like the FED will be campaigning in the elections too. Romney just said Bernanke would be out of a job if he gets elected. http://www.businessweek.com/news/2012-08-23/romney-says-he-hasn-t-considered-single-person-to-head-fed
That is a gutsy call !
QE is a drug. Yet this round of FOMC minutes only managed to succeed in rallying GOLD and SILVER above everything else.
If you put a gun to my head, do not hold out for the QE because it is better to be safe than sorry.
The fiscal cliffs are coming !!!
Japan Could Fall Over Fiscal Cliff Before America
And buy some USDJPY. Because algos cannot really compute fiscal cliffs on their systems.
What Trades For Tomorrow ?
I am taking a break. Keeping bit of Facebook, bit of Zynga, bit of gold, silver and bit of SDS US (double short S&P 500).
For the rest, I will assess next week. Like Clint Eastwood said, it is half time for me.