RE: Anyone for coffee??10 Mar 2014 00:22
Hi besucool: I am an avid fan of the Keiser report on Russia Today with Max Keiser (RT.com).
There is a central thread through which commodity inflation features esp. silver and gold.
The quantitive easing programme has pumped enough money into the system to inflate gold but property has taken a precedence. (There is a belief that property in central London is inflating due to many foreign buyers purchasing property instead of gold to avoid the storage costs).
Coffee specifically has been rising strongly since last November. Poor harvest is blamed. I reckon it's been a good futures bet instead of gold. Why? I think there has been a large sell off due to simple liquidation in order that debt can be covered wholly /partly from companies, governments and individuals before interest rates start moving upwards. Coupled of course with the recent poor growing weather which has affected recent growing season plus commodity fund inflows and the old favourite- E.Asian esp. Sino-Indo middle classes ! I bet coffee shops are popping up just as quickly in the market towns of China as in the market towns of the U.K !
(Mind you, coffee shops are ideal money laundering businesses which are largely cash based !)
atb