I've been thinking that the commodity sell off was just "not right".
Today the Radio Guru said the same.
For some time, he has been predicting a crisis in the US Dollar.
He thinks that it will fall 30%, but not gradually over a few months time but in a few days time-period!
Maybe he's too bearish. Maybe he's wrong.
Maybe we are not running a $4.6 TRILLION budget deficit this year.
Remember the government DOES NOT COUNT various Trust Funds like Social Security!!!
And it is important to note that SS only accounts for a little over half of the Federal Government Trust Funds. The other portion includes Medicare, Civil Service retirement funds, Military Retirement Funds, Unemployment Insurance, and about 150 other programs.
Is there panic or greed in the commodity sell-off?
Are they just positioning for the next ramp?
Last Year's Headline: Goldman Sachs warns of $105 a barrel oil
Mar 31, 2005 -- NEW YORK (AFP)
But then we read:
"Unleaded gasoline made up 8.72 percent of Goldman's commodity index as of June 30, but it is just 2.3 percent now, representing a sell-off of more than $6 billion in futures contract weighting.
Goldman Sachs, which runs the largest commodity index, the G.S.C.I., said in early August that it was reducing the index's weighting in gasoline futures significantly."
"For commodities...making a complete accounting of capital dedicated to holding commodities from the time they are produced to the time they are consumed infeasible."
GSCI LINK
As of today, the energy weighting is 67.98%
(I couldn't find the unleaded gas %)
Precious metals is 2.49%: Gold 2.18%, Silver .31%
Think they may buy some gold at bargain prices before that USD plunges??
Edited by Rogerdodger, 06 January 2007 - 12:19 AM.