Commodities And Stock Markets No Longer Viable For Gauging Economy

 The stock market has often been compared to a gambling casino, and indeed that is exactly what it has become. Its job sometimes seems to be to screw the most people out of their money and transfer wealth to the insiders of the game; hardly a way to help Americans share in the wealth of our corporate might or save for their retirements.

This is not to say that the stock market does not or has not in the past helped assist the funding of companies, so they can grow, and provide all the things that the world needs and consumers desire, while employing millions of Americans. The stock market's stated mission is the funding of American Business and forward progression. Unfortunately, with all the corruption, cheating and greed we find things are not so good for America.

The commodity markets have a justifiable need and solve a major problem for free markets. They also allow reduced risk for producers and even out prices for the market. This helps business assign and predict costs, which could rise unexpectedly disrupting production or leading to business failure and bankruptcy. Unfortunately, due to mass speculation, cheating and greed the commodities markets are causing false inflation of goods through run-away speculation, causing the very problems they are suppose to prevent.

Judging the economy by the stock markets or commodity markets is no longer viable. Sure, when they artificially increase supply, demand or monetary resources to or from one sector or another, this does affect the economy, but in itself is only a portion of the economy. The stock market unfortunately does effect perception of the overall economy or its potential direction due to its effect on spending and investing behavior, but Stock Market is not the economy, nor should we be fooled into thinking it is.

Over speculation in the commodities market, for example speculation on Sweet Crude (oil) causes unnecessary increases in prices, which effects many sectors of our economy due to rising costs at the wholesale level; transportation, travel, and retail, because everything bought or sold must be delivered by train, plane, boat and/or truck. If the oil prices rise too quickly or stay high too long, yes it definitely adversely effects the economy, but we have to ask why are prices so high in the first place; speculation.

A few make a ton of money and the entire economy suffers and millions of jobs hang in the balance. We have a problem with the process, not with capitalism, not with free markets and not with the America. It's time to do some refining on the trading processes. Without these modification, we are going to experience more chaotic markets in the future, which will be great for a few, but have a devastating result for all of us. The stock and commodities market are no longer a viable source for judging the strength of the economy, since when is a gambling casino bet a good judge of the price of rice in China or the future of this year's economic numbers.