__________________________
The first day of corn-back dollar trading started out promising, but ultimately ended up in a failed “pop” over the 20-day EMA ceiling. Late news out of Central Illinois informs us that the Fed’s newest Moline Corn Repository, while heavily fortified against human intervention — a la “Fort Knox” in the days of gold-backed currency — was most unfortunately sited next to a large hog farming operation. What happened next was true Bernankian justice…
Apparently the sus domesticus hordes resident next to the Corn Repository were overhwhelmed by the late afternoon corn-fruit scent coming from said Federal vaults, and that lure, excacerbated by an early Spring hormonal rutting urge, had the neighboring porcine hordes rending the outlying electric fencing and within moments, consuming the precious American staple (and currency backing) with piggish glee.
By late afternoon trading, one third of the Federal Reserve Currency-backing outstanding was in the belly of some of the nation’s most desireable pigs. The following daily chart illustrates the day’s action — especially the failure of the corn-dollar to break back above resistance– with heat-seeking stoat-like acuity:
That’s two days now that the corn-dollar has closed below $76.00. Not good news for you dollar bulls (cough! cough! Cain Thaler! cough!).
However, there is a glimmer of optimism available as well. Late tonight an emissary for the Fed mentioned that since most of the most recent reserve backing is now in the gut of some prized Illinois sows, Chairman Bernanke would announce soon the official newer and stronger “pork belly bacon fat-backed dollar,” later this Fall.
As a sop to certain liberal constituencies, the Chairman has also acceded to locate the new Federal Repository on 125th Street in New York City, next to Sylvia’s. No further devaluation is anticipated.
______________________
Carry on… most likely with ANV, which has been a star in my portfolio this week, as all Jacksonians should be.
Comments »