Commodity Wars: JP Morgan Stockpiling Inventory to Influence Prices, the Flow of Goods, and Rents

Crony capitalists are never interested in the risk and rigor of ‘free markets,’ only in the surety of monopolies and obtaining a license from the authorities for extracting rents from them.

They alternately create artificial abundance and scarcity to influence prices, with the objective of lining their pockets.

This move by JP Morgan to enlarge their warehouses and stockpile key commodities helps to demonstrate the growing scramble for resources which is a recurrent theme, and at the same time it shows the pernicious influence of mingling government guaranteed customer money and subsidized Federal Reserve funds with what is essentially private speculation.

JP Morgan is a bank that was rescued by public funds, and that exists at the sufferance of the US government and their money. Some of the pampered princes of the Republic would like to turn the financial sector into a new House of Lords.

Still, there may be a mutual interest between the government and their bankers in influencing the world’s flow of key commodities. And if a few friends become wealthy in the process, well, so much the better.

http://jessescrossroadscafe.blogspot.com/2012/02/commodity-wars-jp-morgan-stockpiling.html

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Very Scary Price Inflation Indications

Source:  Economy Policy Journal

Here’s some very scary anecdotal evidence on price direction from the ISM’s release today:

Commodities Up in Price
Airfares; Beef; Chemical Products; Chicken; Crab; Coffee (2); #1 Diesel Fuel (2); #2 Diesel Fuel (3); Fuel; Gasoline; Medical Supplies (2); Paper; Petroleum Based Products; Resin Based Products; Vehicles; and Wire.

Commodities Down in Price
Corrugated Cartons is the only commodity reported down in price.

Commodities in Short Supply
Crab; #2 Diesel Fuel (2); Fiber Cable; and Pharmaceuticals.

Note: The number of consecutive months the commodity is listed is indicated after each item.

Bottom line, If you don’t fly, eat beef or chicken, drink coffee, use gasoline, and just sit on corrugated cartons, prices aren’t going up for you.

The price inflation tsunami is coming.

http://www.economicpolicyjournal.com/2012/02/very-scary-price-inflation-indications.html

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