Southern Pacific Resource Corp STPJF

Commodities Gain as Goldman Turns Bullish

[LeGagneur]

The S&P GSCI Index of commodities gained 1.2 percent, recouping about three-quarters of yesterday’s 1.7 percent slump, as Goldman Sachs suggested buying oil, copper and zinc in a reversal of last month’s call to sell commodities, while Morgan Stanley raised its forecast for Brent crude by 20 percent.
https://www.bloomberg.com/news/2011-05-24/euro-weakens-for-third-day-asian-exporter-stocks-fall-amid-debt-concerns.html

My Comment - As the only ones left buing treasuries by now in the FED and as currencys are beeing devaluated in a very coordinated fashion as we speak big investors are in the process of quietly accumulating hard assets primarely Oil, Copper and Zink. But as you accumulate you want to get in at low levels as you'll then earn big time when the real price spike sets in. So bottom line don't sell your STP shares and accumulate on all dips. We're starting to see Europe trembeling now as not only Greece but also significantely larger economies such as Italy and Spain increasingly are facing seriouse challenges financing their huge defecits. But then recall ALL OECD countries almost witout any exeption have humongeous amounts of debt. Worst of the all Japan and the issues facing the USA is in fact greatr that what is the case in Greece. In such a scenario where there only are two options either default of expect significantely higher interest rates (in Greece now 17% Ireland 14% and in Italy as well as Spain 10 year bonds now over 6%) the private sector and the bansk now are backing of buing any bonds. Then the only one left to finance - if not allowed to default - is the goverments themselves by printing more money to buy their own bonds. There is nothing in this world as inflationaly as that process.