April 2008

Today finance ministers from around the world held an emergency meeting in Washington to address food emergencies in 33 countries.   One reason for the shortage is the growing population that has surpassed the production of food through limited agricultural activity.  Population is growing and yet agriculture remains limited by the amount of land that is farmed.    Why have our political leaders been more focused on other issues when this could have been foretold decades if not centuries ago?  The answer lies once again in the oil industry.

Read more on Global Food Crisis Makes Currency Irrelevant…

For the past few months economic fear has hung like a dark cloud over the U.S.  and it seems that everyone feels pessimistic about the near future of the greenback.  However, common sense and history have always shown that when society as a whole reaches its peak of widespread bearish sentiment about any financial equity, it is almost certainly near the bottom.   That is why the majority of traders are always most bullish at the top of a market and bearish at the bottom which is the opposite sentiment for profiting in a market.  I can clearly remember in December of 2004 when every article I read warned of doom and gloom for the U.S. dollar for the coming year.  That turned out to be the low for the U.S. dollar for the next 2 and a half years and not until July 2007 did the dollar ever go below the low of December 2004.   This chart shows that time as a high for the EUR/USD Forex spot market.   Keep in mind that this chart shows the inverse of the dollar’s value.   When the U.S. dollar is going down in value Forex traders buy that currency pair to make a profit while it is going up.

Read more on U.S. Dollar Starting its Comeback in Anticipation of a Better President….