Friday, April 1, 2011

Jobs are jobs

We actually had more jobs created last month than the population increased, just barely. There is nothing to cheer about unless it was you that found a job. There is no magic trend line, it takes a manufacturing base to have a modern economy and we don't have one.

The USDA is predicting a record corn crop but not any decline in food prices because of it. The USD is continuing to weaken and oil is up again. We have an ever larger surplus of gasoline as demand weakens and we already had record supplies but the price continues to go up.

Supply and Demand only works in a market of equals which never occurs in nature.


ohio minuteman said...

The problem with commodity prices is the hedge fund operators and speculators own the commodities market.
In the 1930's commodity markets were established to facilitate producers, transportation, and wholesale-retail marketers of various goods or commodities. The marketers had to put up up to 50% of the contracted delvery price to enter the market. These contracts would be traded a few times and made contributed to more stable prices tied to supply and demand.

Today the entry margin has been reduced to 10% or less so speculators can work the market by churning, trading commodity contracts with the tacit approval amoung themselves to drive the price up, each contract is traded an average of eight transactions per day.

This is how a market can be manipulated to move prices opposite of what would be a normal direction.