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| All time highs only happen when allowed to happen. We don't have free markets nor capitalism, we have a financialized system all controlled via central planning, and those central planners are already in the news telling us what their next plan is to continue to manipulate the economy. And since this is the nature of our world it is difficult to put much faith in what treasuries are doing since that is one of the mechanisms of the control. The cost of debt is set where it is desired.
What is more of interest is what other entities on the outside of the control do in response. If the Fed continues to destroy the value of the currency and an entity on the outside is holding $us, what do they do? They know the $us they hold will purchase less of whatever in the future. Commodity markets are priced in $us and look to the future. So it would be a reasonable conclusion that prices in $us rise. Unless of course the people who control these things can stop that from occurring.
But on a very simple level - as the $us drops in value (as we are told the planners will be doing), then all things measured in $us goes up. Grains being one of them. So the price action this week given a bearish report may be more to do with talk of more cheap debt flooding the economy then how much corn is in the field. | |
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Harvest low
