Home > Uncategorized, World Issues > Commodities Derivatives : Pigs vs. Pigs

Commodities Derivatives : Pigs vs. Pigs


It is common knowledge that commodity prices have tripled since 2002. What is commonly misunderstood is “why”. 2013 will be the year that exposes the real reason why commodities have tripled in price. The culprit….the criminals who did this to our global economy are the same faces that produced the 2008 housing crash. DERIVATIVES TRADERS

Over the past 100+ years, commodity prices have slowly dropped by 1.2% per year showing the improvements gained by modernization of machinery and increased productivity.

The index shown starts 110 years ago and trends steadily downward, in apparent defiance of the ultimately limited nature of these resources. The average price falls by 1.2% a year after inflation adjustment to its low point in 2002

The great increase in personal wealth and the development of nations around the world are all a result of this trend. As the food prices cost less and less of our disposable income, we were able to rapidly advance. Its all simply laid out in Maslow’s hierarchy of needs.

Once you don’t worry about feeding yourself, you move onto higher aspirations and goals.

Since 2002, this ability to grow and evolve has been stopped because of the hyper growth rate of the cost of foods. This is not caused by too much demand. It is not caused by fuel, seeds, taxes, or any other external natural causes. This 300% rise in commodities is caused by inside market pressures. These are artificial. These are caused by the pyramid scheme of Derivatives when they are under the forces of collusion with the futures contracts. Once the futures contracts accounts for a majority of the commodity, then there is an ARTIFICIAL shortage of the goods. The derivatives holders can then raise the prices of the bundled futures because they have a virtual monopoly.

Why 2002?

In 2000, just before Bill Clinton left office, he signed the bill that will eventually lead to millions of deaths because of starvation.

The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that officially ensured the deregulation of financial products known as over-the-counter derivatives. It was signed into law on December 21, 2000 by President Bill Clinton. It clarified the law so that most over-the-counter (OTC) derivatives transactions between “sophisticated parties” would not be regulated as “futures” under the Commodity Exchange Act of 1936 (CEA) or as “securities” under the federal securities laws.

This gave the freedom for the powerful international investment companies to launch huge derivatives operations that are better known to the public as PYRAMID SCHEMES. They lock in the futures contracts for any tradeable items. They sell those derivatives to a partner company that bundles them, pad them with non-productive contracts and sell them as derivatives.

To everyone who gets in early, there is huge money to be made. It is all paper, so it can be leveraged heavily. The only person who loses is the one caught holding the paper when the contracts come due and they realize that more than just a few fail.

As I stated in a previous article, this is how the housing market crashed in the US, and this is how the commodity market will crash. In the housing market, the bundled mortgages became junk when the mortgage payments were not made. In the commodities market, the derivatives will become junk when the price to produce the item is too great and the farmer does not produce enough to fulfill the contract. Instead of a house being foreclosed, this time it will be a food contract, where the food will not be delivered.

This is why people will starve.

Why will this start happening in 2013?

In 2013 we will feel the first shock. Because of the 300% rise in corn prices that have padded the pockets of the derivatives trading houses and their investors with billions of dollars, the cost to feed pigs is now too high. Pig farmers have significantly reduced their herds. While they are still selling off their 2012 pigs, they do not have the young pigs now that are supposed to be delivered in 2013.

While some media outlets like ABC News are reporting that this shortage is a fabrication, you only need to look at the history of the derivative to understand that a crash is unavoidable. It is perfectly logical that the downstream economy of the commodity will be the first to show the crash.

In short, it is a good bet that the pigs we know as the derivative trading companies will cause a shortage of pigs in 2012 due to their derivative trading activities. The one thing we know for sure is that the cycle of the derivative trading boom and bust is never more than 10 years. The market is under the total weight of 10 years of derivative profit taking from the international investment houses. Derivative traders never stop pushing the price until the contracts fail to deliver the end game of the derivative bundle promise. We should see this in 2013. The first failed delivery of commodity contracts on a massive scale.

Itia (Abroad)

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  1. April 19, 2013 at 2:00 am

    When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get three emails
    with the same comment. Is there any way you can remove
    people from that service? Thank you!

    • May 19, 2013 at 7:10 am

      I looked everywhere on my administration page on how to delete those who request updates. There is nothing I am able to do……I am very sorry about that.

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