26-May-2008 : US Federal Reserve Outlook

Since the US Federal Reserve began slashing interest rates in Mid August, and leading central banks around the world pumped billions of dollars into the financial system to rescue the banking industry the commodity markets have soared to record levels led by crude oil, soybeans, palm oil, wheat, gold, silver, coal, hogs,live cattle. Pension funds have plowed over 300 billion USD into commodity funds as a hedge against the collapsing US Dollar and the explosive growth of the world's money supply.

Pension funds, banks and hedge funds are driving the commodity markets.

The Australian and Canadian dollars are benefitting from this rising commodity trend as well as Man investments.

The Bernanke Fed has created a monster with its failed policy of slashing interest rates and devaluing the US Dollar driving Crude oil to USD 135 per barrel and transmitting inflation throughout the world.US Treasury chief Henry Paulson and President Bush are calling the shots on US Monitary policy
and might be secretly in favor of higher oil prices. Their chronies in the Federal reserve seem afraid to resist. This is the last rape of the American public before they lose power in the November election. Bush and his insider friends need to steal as much as they can before the game ends and they are forced out of polititical office.

The sad fact is that no one can stop them as they control the machinery of power which is the power of monitary policy and the the military. Our only hope is that the US public throws them out in November.

Bush will retire to his ranch in Texas to live in luxury for the rest of his life on the misery he has created for the mass of the public.

To protect yourself invest in high dividend paying shares, commodity related shares and those companies which can raise their prices with inflation. I have sold all REITs, construction shares for my clients and am maintaining positions in gold and Man Hedge Funds.

This should work until October 2008.