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Bankster-Created Commodity Crisis Intensifies

Articles & Blogs - US Commentary

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In a recent commentary, Silver: Shorting Consumes, Investing Conserves”, I provided a detailed argument explaining how and why the extreme and chronic manipulation of commodity markets by multinational bankers inevitably does an enormous amount of harm. I then provided overwhelming evidence in support of this principle with respect to the silver market.

This commentary will follow up on that work, except this time I will demonstrate these principles in a broader, more comprehensive manner. The basic dynamics are very straightforward, and have been discussed in considerable detail in many of my previous commentaries.

We start with the bankster game of theft-by-serial-currency-dilution. The bankers relentlessly drive the value of our paper currencies toward zero through over-printing their paper money. There is absolutely no difference between destroying our purchasing power by debasing our money and simply reaching into our wallets and stealing it.

This becomes obvious when we note that the banksters are simultaneously giving all this newly-printed money to themselves – for free. Thus they never lose any purchasing power (i.e. are victimized by theft), because they print-up new money for themselves faster than they are destroying the purchasing power of the rest of society. All those who seek to deny this theft-by-dilution scam are simply ostriches.

Should someone have had the good fortune to be born wealthy and immortal (and had the common sense to store that wealth in gold), he would have discovered that his gold money perfectly preserved/protected his wealth. Whether he wanted to be a well-dressed Roman 2,000 years ago, or a well-dressed banker today; one ounce of gold would have sufficed in either era (or any in between).

However, should that Lucky Man have been foolish enough to convert his gold money into mere paper currency when the Federal Reserve was created back in 1913, then in less than 100 years he would have seen roughly 98% of his fortune ‘evaporate’. More specifically, roughly 75% of that evaporation would have occurred in just the last 40 years, since Nixon assassinated the gold standard – and the bankers have been able to engage in their theft-by-dilution unrestrained. When we understand that the bankers have been able to steal from us more than four times as fast since the gold standard was abolished, we begin to understand why they have such a pathological hatred toward a gold standard and/or “good money”.

Naturally the bankers try to conceal their stealing, which brings us to the other half of their crimes: the relentless manipulation (i.e. suppression) of commodity markets. Destroying the value of our money is exactly the same thing as driving up prices, since when our money is worth less we must use more of it to buy the same quantity of goods.

The bankers call this “inflation”, and try to pretend it is some mystical, and totally incomprehensible phenomenon, when all that inflation represents is the speed at which they are stealing from us. This also explains why our banker-serving governments have spent more time and effort in lying about inflation than any of their other statistical outrages – since they also conspire to hide the bankers’ stealing.

As I demonstrated unequivocally in my previous silver commentary, suppressing a commodity market (generally through serial “shorting”) always destroys that market. The hypothetical example I used then was chocolate bars, however we can now apply that example to the real world – and the total, global food supply.

We can look at almost every major commodity market on the planet and see precisely the same thing: total global stockpiles are near multi-decade lows and/or all-time lows. This has absolutely nothing to do with food-production capacity.

Obviously with the unemployment epidemic in the West there is no shortage of labour. We are also constantly hearing about farmers who are “unable” to maximize production (generally due to some form of price distortion in markets). Meanwhile, we regularly hear about Western and North American farmers literally throwing away their food because prices are too low for them to break even. Maximizing this outrage, fully ¼ of the annual global harvest is wasted by spoilage – shipping it all over the globe. Clearly if these food products were fairly/accurately priced, producers would not allow ¼ of every harvest to be squandered in such a pointless, extravagant manner.

Just as I demonstrated hypothetically with chocolate bars, and in the “real world” with silver; we can see the relentless shorting and price-suppression of commodities by bankers (to hide their stealing-by-currency-dilution) destroying the entire global food supply. The bankers will not be satisfied until billions are starving.

The most recent (and most terrifying) example of these crimes against humanity is in the massively important global cooking oils market. Affluent Westerners may not fully appreciate the tremendous importance of this market (and global stockpiles of those oils); however it is arguably the most important niche in global food production.

In our own economies, these cooking oils are used “to make everything from candy bars to bio-fuels”; they are essential “building blocks” of our entire food production industry. However they are every bit as important (if not more so) in poorer, developing economies. In these less complex societies, these oils are also used as ingredients in countless foods – as well as being absolutely essential in their less sophisticated cooking. Lastly, many of these oils are extremely rich in vital nutrients, and all are high-calorie inputs to generally low-calorie diets. Indeed, when we have some “humanitarian crisis” requiring food to be airlifted into some crisis-stricken population; cooking oils are at the top of the list (along with water) when it comes to what is distributed (and needed) among those people.

A Bloomberg article on this critical market reports two horrifying trends: global stockpiles are at their lowest levels in two generations; and growth in demand is increasing at five times the rate of population increase – due to the artificially low prices caused by commodity price suppression. In short, one of the world’s most vital food-commodity markets is racing toward complete implosion, and one of the world’s worst humanitarian catastrophes in history. And all this is being done by a tiny group of bankers, simply so that they can get away with even more stealing.

Raising this from a mere “crime against humanity” to attempted genocide (on a planetary scale), note the additional abomination which Bloomberg has reported: the lunatic-warmongers running the U.S. empire are now looking to burn these vital oils to fuel their tanks and war-planes. Let me reiterate this to make sure that people fully comprehend this atrocity.

With the entire planet careening toward the complete collapse of one of the most important food-commodity markets on Earth (and mass-starvation); we have the U.S. government seeking to literally burn vast amounts of these precious oils - in order to inflict much more death-and-destruction on humanity by killing even more people with its war-machine.

Clearly it is impossible to justify the loss of even one life merely to facilitate the stealing by a small group of ultra-powerful psychopaths. However; to recklessly endanger the lives of billions in order to rape-and-pillage the entire global economy makes these individuals the worst “monsters” in the history of humanity.

Comments (6)Add Comment
written by paxjds, November 22, 2011
Jeff, what many fail to mention on food prices is the size of a package shrinks but the price stays the same. The employees of large grocers talk openly in the stores about the high price of foods and the shrinking packages. I shop in 2 states 1300 mile apart, and the score is FOOD INFLATION 39, Consumer 0. Both states with almost identical price increases.
There are also many reports around the world of riots over the price of food. I have noticed the prices on fast food trucks in Hawaii Five 0 are roughly 20% up since my vacation there 2 years ago.
Look for more QE....9 or whatever each year into the future here and abroad. Expect more price increases for food causing more violent riots as peoples hunger pains rise. Government and Bankster coalitions seem to gaurantee such events. One wonders if that is their 'Master plan' in lieu of declaring bankruptcy and wiping out all debts; and starting new fiscal systems around the world backed by precious metals.
But the Banksters want the money created out of thin air and the INTREST paid back in full, hunger and poverty or not. Perhaps a better day is coming when the Banksters will not control money creation, but We the People of Sovereign nations will own the trillions of "Free Money" with no interest paid as another form of medievil taxes. Then, Slavery will finally be eliminated from the planet.
Jeff Nielson
written by Jeff Nielson, November 22, 2011
Mathnerd, obviously there is a lot of fluctuations in peoples' diets, so what we buy may differ.

LOTS of packaged foods have not seen their prices rise that substantially. In part, this reflects the LONGER "food chains" between the original HARVEST, and that crop actually getting into "packages".

In addition to orange juice, there are NUMEROUS other items of produce which have risen at least that much - including (at least on the West Coast) VERY "ordinary" vegetables like carrots and celery.

Many if not most types of meat have risen AT LEAST that much, with the exception of ground beef - which is known as an "inferior good".

While milk hasn't risen quite that much, some other dairy products (i.e. cheeses) are pretty close.

And don't even get me STARTED on bread, pasta, and ANYTHING where the primary ingredient is some form of grain...
written by mathnerd, November 22, 2011
I assume you're talking about the wholesale food market, Jeff?

It's just that the retail prices of most kinds of food I buy aren't up nearly that much annually. Whereas I don't pay much attention to wholesale prices.
Jeff Nielson
written by Jeff Nielson, November 21, 2011
Dalkrin, food inflation is running close to 30% in Canada, without the commodity-suppression it would be running at close to DOUBLE that (but at least PRODUCTION would be sufficient).

You're forgetting about the OTHER function of precious metals: as the "canary in the coal mine". It doesn't help them to suppress gold/silver prices if they don't suppress OTHER commodity prices to help HIDE "inflation".
written by Dalkrin, November 21, 2011
Fascinating view of the workings of the market for that other kind of oil, which we directly consume. Bloomberg article was comprehensive.

Not sure if I agree with the existence of the same price-suppression scheme taking place in this market. Since few people are likely to hoard food oils as a store of value, I don't see how the bankers would feel threatened by allowing a free market to shape the daily price of this class of commodities.

I expect the normal mechanisms to kick in whenever market stresses lead to a swing in inventories or price. With high demand and shrinking supply, it seems that price would increase, discouraging consumption in the short term, but encouraging more production in the long-term. It could make life miserable for those on the lower rungs of the ladder, but they would survive.

In my view, the bigger threat to the vulnerable population worldwide is that broad-based inflation leads to a hike in all food items, in all categories of retail products in fact. It would be a guessing game if wages would be able to keep pace, and it certainly would not be a smooth transition.
written by paxjds, November 20, 2011
Not only has the Bankster/Government stole by 'currency dilution'(printing money for deficit spending), but 2 weeks ago they have now gone to outright theft and thievery from brockerage accounts. And again, no one go to jail. The famous bankster Corrzine of Goldman's fame was apparently behind it. Since I cannot tell the diference between a congress person and a Bankster, I image a "bailout" of the crime will occur and misteriously $750 million dollars will electronically appear in accounts to "Bailout" Corrzine and Gangsters.
The same fascist control the comodities markets including food and precious metals. When their manipulation of the comodities market is not enough, now they just appropriate your brockerage account for precious metals, stocks, etc. When honest brockers are getting out of the business and cannot protect your investments, then all around the world should wise up and do what they have to do to protect their investments. Apparently laws and government agencies no longer protect the invester (just Banksters, congressmen, and wall street thieves are protected).
Till law and order return to the world stage and the Banksters are removed from power for good, invest wisely for you and your family.

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