A huge amount of money has been created in the bailout to pay off the bad bets. It would be inflationary, especially in the billion dollar home, personal jet and yachts over 200 feet long category. Unlike the person who won the billion dollar lottery, the kind of people who acquired huge sums of money in the financial bubble are not going to spend it on current consumption. They are not going to order 10 pizzas for delivery now that they have big bucks instead of the 2 pizzas they used to order.
The big thing to do with big bucks is to buy the future. Things in the future that are a sure bet. The writing is on the wall: Commodities.
That is what this analysis says. But not too soon. But maybe now is soon enough? It is a big play. It references this Bloomberg analysis.
Commodities are the next big bubble?
China figures heavily into the commodities market.
Who buys commodities and with what kind of money. It is not M2 money. It is that financial paper leveraged credit funny money that is the extension beyond M2 in the far out money reaches where we don't know what money is anymore and where it can be anything that the manipulators want it to be because they define what it is.
The bubble is built up by creating the perception of increasing return on investment in something that is not really there when the time comes to go over the peak and start the slide or drop when the bubble bursts.
When the housing bubble burst some big financial institutions failed to the benefit of remaining financial institutions all due to how the Fed intervened. This describes the power of the Fed to intervene to burst a commodity bubble. It is a very powerful intervention tool that can be targeted to a specific commodity margin requirement.
Is it possible that the Fed might use this tool to the advantage of major big players to dominate or destroy smaller players in specific commodity areas that the big players may then take over in the division of the financially collapsed entity?
The reason the Fed uses the tool is, of course, to save us all from financial collapse of the entire system. How often can that trick be played?
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