Port Saint Lucie, FL (PRWEB) November 17, 2010
The Federal Reserve chairman recently announced another round of quantitative easing. The market knows that the currency printing presses will be working overtime with the effect of flooding the financial system with more U.S. Dollars. Each dollar printed will be worth less and less and will most likely push dollar denominated commodity prices much higher for many years.
Gold futures prices hit all time highs this year. Silver futures prices hit 30 year highs. Copper futures prices hit multiyear highs. The grain markets hit multiyear price highs. Cotton futures prices hit levels not seen since the U.S. Civil War. Sugar and cocoa futures prices hit 30 year highs. Coffee futures prices hit 13 year price highs. The U.S. government swears that there has not been a significant rise in inflation rates but the commodity markets are saying that they are mistaken. Visit http://www.tkfutures.com/education.htm to learn more about futures and options trading.
Interest rates are near zero and based on the fact that the U.S. Government bought the toxic real estate assets from Fannie Mae and Freddie Mac they will lose billions of dollars if rates go higher. This conundrum of raising interest rates to battle inflation versus losing billions of dollars will be problematic for the Federal Reserve. As quantitative easing continues to be used by central banks around the world, inflation and hyperinflation are very probable and commodity prices may run higher for many years to come. Visit http://www.tkfutures.com/basics.htm to learn more about investing in futures and options.
The author of this article is a 17 year veteran of the futures and options markets and the president of T & K Futures and Options, Inc. Futures, options and foreign exchange products carry significant risk of loss and only risk capital should be used. Past performance is not indicative of future results.