Death comes to us all. Life's but a walking shadow | Take this statement for instance: "After years of extraordinary policy stimulus around the globe – aimed at pulling demand forward from the future – world trade growth has collapsed even further (top line in chart) since we last highlighted it publicly. Indeed, year-over-year (yoy) world export growth is now nearing zero."
Economies (aka consumers) buy commodities to use them, particularly oil and food. The factors that stop commodity purchases are the price or they just don't need anymore of a particular item. How do you pull demand for food or oil from the future? Does this make sense in the case of oil, corn or soybeans?
The thing I don't understand is: Two years ago people gladly paid $90 a barrel for oil and $11-12 bushel for soybeans yet today they can buy oil for $40 and beans for $9. It seems to me that what changed is there are enough sellers of both oil & beans at the current prices to satisfy demand but the buyers didn't change the sellers did.
This is the other thing I don't understand when the price of commodities falls that should leave some extra resources for other purchases but I don't see that happening. At this moment gasoline is a good $1 cheaper than last year. What's happening to that money? Where's it going? |
What's Sandbagging the Beans?
