Thursday, August 20, 2009

The price increase inflation?

Thus, many economists and government officials say inflation is dead. These are probably the same people who do not see that the great recession. The fact is that everyone has an opinion, but everyone has the right facts. The facts are clear that are many times.
1. Global demand is increasing in the product.
2. Drought and floods are near the historical center previous.
3. Huge amounts of debt is the debt deflation that leads to inflation.
4. Some prices are already rising rapidly.
This is not my imagination, but in reality we see before our eyes. The current crop of sugar is very low because of drought and floods in India, Brazil. World demand for sugar is higher than the production of 5 million tonnes a year during September 2010 according to reports. In other words, there is a deficit the size of a period of two years of supply.
According to the Commodity bull Jim Rogers, he thought that the sugar will be much, much higher during the bull market in the commercial sector. Jim Rogers, chairman of Rogers Holdings, said in an interview in Singapore, 6 Aug. "Sugar is still 70 percent below its historic peak, and not many things in life are 70 percent lower than they were in 1974. Sugar is a big future."

In other words, 40 years ago, the sugar has increased 16 times over five years and reached a peak of 66 cents in November 1974. You can imagine how much money has been made to the trend following trading advisors and their clients? Easy answer, luck .. Think a little 'more crude this year has dropped to a minimum at the top of the range of $ 30 oil is currently the threshold of $ 70. It 'very clear there are some inflationary movements. The reality seems clear that prices are set for some major movements are not seen for decades. Time will tell, but as a follower of the trend that we do not need to know the future, but have a clear plan of how to take advantage of the situation when and if they arise.

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