The Unfolding Economic Depression and Continuing BOOM Commodities and Natural Resources

Stock-Markets / Financial Markets 2010 Mar 12, 2010 - 01:32 PM
By: Ty_Andros

As the commencement of the next leg down in the developed world’s economies continues to unfold like the sunset at the end of the day, the emerging world is HEALTHIER than ever and economic sunrise is still on their horizons. Economic trains traveling in completely different directions. In the emerging world, growth, capitalism, creative destruction and competition are embraced; they know the recipe for an expanding economy which means more food on everyone’s plates

In the United States and Euro zone, socialism is on the march and misery is being spread in ever-widening circles as the last vestiges of wealth creation are destroyed and fed to the elites, their government lap dogs, crony capitalists and their something-for-nothing constituents in a failing effort to rescue themselves. Fights over decreasing income are unfolding between the public versus the private, as there is a little less food on everyone’s plates. Everyone wants to be paid and have free healthcare, but no one wants to work, make products people want to buy at reasonable prices or compete in the world except for public servant with HOT AIR lip service, it is a recipe for disaster!

In the US and Euro zone, POLITICS holds preeminence in ALL its affairs, thus political solutions are always substituted for PRACTICAL solutions. Capitalism, competition and creative destruction of entrenched crony capitalists is BANNED through tax and regulatory corruption. Capitalism is alive and well in the emerging world, and it is dead and buried in the developed world. This is not a failure of capitalism in the developed world; it is a failure of socialism. We live in the land and times of George Orwell, where black is white, up is down and socialism is called capitalism.

Don’t forget, true capitalism is DISINFLATIONARY – its creative destruction provides more goods and services for less money because entrepreneurs compete for customers. Socialism is INFLATIONARY – it is always less goods and services for more money because elites short circuit the creative destruction and substitute crony capitalists who, through regulatory and tax manipulation courtesy of corrupt public serpents, mandate the winners in the competition for CUSTOMERS.

Secular bull markets in commodities, energy and natural resources continues unabated; when the global financial crisis (primarily in the developed world) begins its next leg down, a countertrend pullback will provide an EXCELLENT buying opportunity. As our title for the 2010 Outlook “When Hope Turns to FEAR