corn down

CORN DOWN


As you might have noticed, panicked about, and informed your one friend about, I have now started moderating the comments. This quite frankly sucks as I wanted a wide open process to get honest feedback. I’m getting troll feedback instead. You can still post anonymously, so I hope that keeps your thoughts unencumbered. I honestly want politically incorrect feedback, but I’m over providing a forum for the idiots amongst us. So, congratulations, you won. I’m now censoring. I could wait around to get sued, then sell all my worldly processions and hock my future until death ( a lawsuit doesn’t need merit to break you ), all to satisfy your sense of fairness and free speech on my dime. Get your own blogs if you want a voice. I really don’t have time for this crap. I’d rather be writing instead of editing. But I won’t fight the tide anymore. Creekmore, thank you for your understanding regarding the jerks attacking you from here. There’s a gentlemen for you folks. You could learn a thing or two from him.

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As I was checking out http://www.americanenergycrisis.blogspot.com/ , I was rather startled by the newest corn to ethanol figures. 43% of our total corn crop is going to fuel now. Last year it was, I believe, mid thirty percent. Almost half of our food crop corn is powering our vehicles. Add that to our 13% decline in foreign oil imports last year. Translation- bend over baby, here it comes. No lubrication other than sand. Do you honest injun really think this isn’t an energy crisis? How much more evidence do you need? The last fuel crisis was going from independence to foreign dependence. This crisis is going to be total lack of fuel globally. For a short time China will suck up the surplus we can’t afford. But just because the Saudi oil fields aren’t in free fall decline doesn’t mean spit. The Mexican fields are, due to lack of maintenance spending. The Saudi’s were smarter than that. But they are also sneakier. They are drilling everywhere, in marginal fields, buying up a disproportionate share of drilling rigs, all to give the illusion that their main field isn’t running down. Its been going for over forty years, and that is the max you get out of a field before decline. They might, or might not, go slow decline rather than fast, but decline it will be. No green shoots allowed in an energy down climate.

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So why are corn prices falling? This question wasn’t answered by our intrepid blog writer mentioned above, other than as proof of deflation. Cop out. Gee, just because he doesn’t make any money writing, is that really any excuse not to devote his life to giving us all the answers? Selfish bastard! And, yes, for you trolls, that was sarcasm. So, since I do make a few shekels writing due to my generous legions of doom ( when I get grumpy and mean, it is usually because of only a few jag offs- 99% of you are in fact the bees knees ), I’m going to give this a thought or two. I don’t think it is deflation. It might be commodity inflation, which will be temporary. But it certainly isn’t currency deflation. Look, I know he is smarter than me, at least financially. I’m not trying to put words in his mouth. Read the article yourself. I’m assuming he meant deflation in commodities. But to you and me, non traders, the deflation/inflation debate is really about how the money under our mattress is affected. So, if I’m taking his article wrong, my bad. I really do respect his work as I have mentioned before. Could it in fact be nothing more than a temporary drop fed by an increase in corn acreage ( at the expense of other crops ), and a decrease in demand for traditional corn products? If corn prices went up, corn syrup as a sweetener and corn feed for meat saw a decrease in demand. So now you will see a temporary decrease in corn price. It shouldn’t last long. Go to the feed store and buy as many bags as your greedy little hands can carry, now. Just a few thoughts on corn. I’m running late, so I’m cutting it a bit short.

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