Trading Madness

Well what a roller coaster ride this market has been. The bear clings on with claws as sharp as razor wire cutting American’s 401k virtually in half. Now imagine if you were one of the unfortunate that had needed this cash to live on. Many have flooded the bound markets, but this is an unwise move and the bound markets will crash in 12-24 months.
Investors have been scrambling to find ways to make their cash work for them. I have an electric orange account with ING http://www.ing.com/group/index.jsp So I would recommend looking into ING as a place to earn better interest then your bank. You link your accounts and then simply transfer money. Keep enough cash in your bank to live on and transfer the rest into ING… So in essence I’m saying America needs to get back into the SAVING MODE!

GB

EUR/GBP

I like the possible long potential in EUR/GBP. Chart shows price needs to break the down channel for confirmation.

Follow up

Price objective hit

EUR/USD

This 30min chart does look interesting to me. Its trying to break out of a down channel. I also think a double bottom bounce is in play to target zones.

Inverted Head and Shoulders (maybe)...

This 4h chart of GBP/JPY has a inverted head and shoulders pattern in the works. Should price cross the neckline pattern target would be around 156.00.
It still remains longer term bearish, but my sentiment is shifting and bullish down to the right shoulder.

Grains/food shortage

Since taking an interest in geopolitical news and trying to learn about the economy, I’m thinking grains will be in huge demand going forward. Global food shortages , climate weather changes, political instability, and global depression will trigger Biblical sized food shortages that has never been seen before.

If you think our food supply in America is not in jeopardy then you might think again. Just last year we saw about a 22% increase in our cost of food.

Wheat prices alone have risen 92% last year.

The amount of U.S. grain currently stored for following seasons was the lowest on record, relative to consumption.

Food shortages have historically tied to civil unrest. Many countries have been having riots because not having food. Folks, despite the resources shortages food is one we can not do with out. While many western countries ignore the mounting evidence of a global food shortage, even the complacent United Nations is waking up to the reality of a looming world crisis. In a dramatic December 2007 alert, top UN officials report that in an “unforeseen and unprecedented” shift, world food supplies are slipping to dangerous levels, while raw prices are rising to historic record highs. The situation produced “a very serious risk that fewer people will be able to get food,” especially in fragile third world countries, reported Jacques Diouf, director of the UN Food and Agriculture Organization.

(1)The Food and Agriculture Organization of United Nations warned of more food shortages and crop output during the opening of its meeting on Food Security for All, which is being hosted and organized Jan. 26-27 by the Spanish government and co-sponsored by the United Nations. The objectives of the meeting are to raise the political profile of hunger and food security, develop new partnerships and increase resources.
“With an expected increase of 40 million in 2008, the world today has reached 963 million people who are malnourished,” said Jacques Diouf, Task Force vice-chairman and Director-General of the Food and Agriculture Organization of the UN. “This signifies that right now there are almost 1 billion who are hungry, out of the 6.5 billion who make up the world population.”
Diouf called for an investment of $30 billion per year in agriculture of developing countries to double food production by 2050 and ensure the basic right to food for all people.
Meeting participants included UN officials and representatives of international agencies belonging to the Secretary-General’s High-Level Task Force on the Global Food Security Crisis, along with leaders of think tanks, non-governmental organizations and the private sector.

You can Google “food shortages” to get a pretty good idea of the magnitude this is becoming.

So this is just the tip of the iceberg of mounting issues faces the world pertaining to food.



Sources:

(1) Food and Agriculture Organization of the United Nations

Shmailout Bailout

I think this bail out is a fraud. We are not going to resolve the issues by throwing cash in the fire. In fact the more the gov. gets involved the longer and deeper we shall slide. Americans do not trust Wall Street and they need to speak up. We stand a very good chance of having a complete collapse of the entire house of cards. Does this frighten you? Well it should. Look at the debt this country has, even an uneducated person like myself can see we cannot repay this back.

We as a country are all aboard the TITANIC and the scary thing is we are steering right for the iceberg. I see it playing out like this. The elite will have access to the lifeboats. The rest of us will be trapped and left to fend for ourselves.

Our Government is directly to blame- The 545 men and women who run this country are to blame. They blame each other for the problems and this must stop. We have 300 million people in this country, but yet only 100 senators, 435 congressmen, the President, and 9 Supreme Court Justices, so I’m pissed at both Democrats and Republicans alike…

What is the solution to the mess? Well, spending is our American problem. Yep, we like to spend. Why would the gov. want to give the people a crumb and think this will stimulate our economy? What a joke! You see folks, the 545 people who run the show are not in touch with reality, they make way too much money to know how hard it is for the common citizen. They don’t know or they have forgotten how hard it is sometimes to make ends meet.

We had kids who were allowed credit and houses they could not afford.

I was taught in the military as a Non-Commissioned Officer that leadership is something that is earned and not given. I learned to lead by example. How can it be possible that Geithner has been elected into a high position, even though he did not pay his TAXES… THIS REALLY PISSES ME OFF…, Not fair folks. You or I would get our heads handed to us for not paying taxes and thought of as a low life. Well, Justice for one is not Justice for all. His failure to pay taxes should have disqualified him. Period.

Our Greed is now repaying us back as a nation. The golden parachutes are gone. CEO’s of big corps thought they were the stuff. Jokers are now sweating it out. This is good and we need the fear to grip this country as a whole and shake the daylights out of us. We need to come to our senses and to bring production jobs back to America. Anytime you kill the train engine you kill the train. We have been limping along for a good while now.

I’ve been shopping at Circuit City for over 15 years. I was impressed with the knowledge of the sales reps and they had incentive to do well. If they sold something they got what use to be called commission. The more they sold the more they earned. Then all of a sudden the GREED mode of corp. America attacked. They took away all incentives. This indeed killed the engine. Ultimately this was the beginning of the end for Circuit City. Folks, this is what has been happening on a macro level around the entire country. I saw it coming for Circuit City 3 years ago. The scary thing is I bet the upper tier of that company did not have a clue. We need to bring back the engine and through incentives reward those who deserve it.

By GB