Commodities are getting scarce and pricey. No, not due to demand but due to hoarding by speculators in
the global futures markets. The trend is most dominant at the London loophole where the regulator FSA is extremely lax and ineffective and the British Government encourages the practice of deregulated markets to ensure the that broker, hedge fund Banker lobby stays happy. The consequences of such rampant speculation will be severe. If in September last year it singed Mozambique, and in January it fired up Egypt, by April it will burn up the rest of the globe be it Asia, Europe or the US
Commodity speculation has reached new heights at London's deregulated markets with high speed electronic trading and high liquidity provided by Ben Bernanke's QE2 through profit hungry global banks. The cornering of inventories of oil, food, metals is going to have catastrophic impact all over the world leading to food riots, looting and even war. The speculation at the London commodity markets and metal markets is at its peak and the greed of the Wall Street Banks and the hedge funds in absence of regulation by the FSA has enabled traders to corner stocks that are no longer moving into the markets. So excess liquidity has ultimately lead to hoarding as a result of which prices have shot up globally. We have been warning of the same in this blog as well on several other forums that we write for since the last one year few of which are as under :
http://bit.ly/epLQby , http://bit.ly/dItqOg http://bit.ly/bWW9hY
Also see posts dated 16th Jan 2011,15th Jan 2011, 2nd Jan 2011, 30th Dec 2010, 26th Dec 2010 and 4th Dec 2010 of this blog for more on speculation in the futures markets.
So take care. Stop speculation , Fight the London Loophole and regulate commodity and metal markets honestly and transparently to curb price spikes.
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