Just a week or so ago the US Attorney General was charged with routing out the evil speculators in the energy markets.....and then the Bankers and their compatriots took to smashing most of the markets in gold, silver, and oil to take the pressure and focus off the looming inflation. I found this on another blog and thought it worthy as a way to look at why these actions were taken.....who benefits in the near term and who benefits politically...........oh, if only democracy was a gift to the people rather than a toy of the powerful elites.........enjoy!
"Commodities prices have to come down if Obama wants to get re-elected, and Obama wants to get re-elected. Let's assume that the six largest Wall Street holding banks, who have made windfall profits under Obama, and had spent much money getting him elected in the first place, want to see him get re-elected. Here's how Obama and his financiers will win.
Major stumbling blocks in the way of Obama's re-election are the high prices of food and fuel. These prices will be brought down. This will be accomplished by reversing the US dollar plunge. The USD is close to an all time record low against the Swiss Franc, but it is its plunge against the Euro that is hurting the USD most. A firming dollar against the euro will result in lower commodities prices. Expect a stronger dollar against the euro and lower prices for food and fuel as we get closer to the election. Hikes in commodities futures margin requirements and a commodities deleveraging from the big banks, along with a strengthening dollar, will equate to food and fuel price relief for Americans. This is easily obtainable, because the central banks and the commodities exchanges all work in concert with each other. Remember, a stronger dollar vs the euro also equates to a weaker US stock market.
Here's something else that can be done to assure Obama's re-election. Obama got Osama, now he can use this event as justification for removing troops from Iraq and Afghanistan. If, before the election, Obama starts decreasing the number of troops in the MIddle East, as he once promised to do, he will be increasing his chances for re-election.
Long term, after the Presidential election, the dollar will resume it's plunge to near worthlessness, Food, fuel, sliver and gold, etc, along with stocks,.will climb in value once again. But from now until time that Obama gets re-elected, the stock market and the commodities market could be dangerous places in which to be long.
I believe the only thing that could derail Obama's re-election is another major terrorist attack on US soil. That would be a game changer. Instead of just drifting lower, as it would with a gradually firming US dollar, the stock market would fall like a rock, and Obama's re-election chances would fall along with it. "
