Friday, June 27, 2008

Institutional oil and food futures Investors killing the future

Because of the falling dollar institutional investors worldwide are looking to keep their jobs anyway they can. Unfortunately, their solution is helping kill the world economy.

In order to get their pensioners or states or counties or whatever the most bang for the buck they are forced to invest in one of the only good deals these days: oil and food futures which are skyrocketing. Though these institutional investors may keep their jobs and not get fired in these troubled times, these investments by driving up the retail cost of food and oil 30% to 50% worldwide are causing more problems for the whole world than they ever could solve for their pensioners portfolios.

This whole thing is backwards and until laws are put in place to protect the now global economy, the whole world economy is going down sort of like the Titanic, Slowly.

It isn't like the great depression. It reminds me more of the stagflation of Japan the last 10 years. What is happening to the largest nations is like Japan's stagflation. What is happening to smaller nations that are less adaptable is slow or fast death depending upon the nation or area.

The global economy has become so complex no one is in charge of it and as long as it stays the way it is we will all suffer. It is my hope that nations can join together to create new rules and enforceable laws so that we are all not just economically strangled right out of existence.

What is happening now doesn't really help anyone long term. Even investors from Saudi Arabia, Kuwait, Venezuela and even Canada, the United States and Mexico need somewhere to invest their money after they make it from oil. So both in the short run and the long run absolutely everyone is being harmed by what is presently happening on earth.

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