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Monday, December 14, 2015

Almost every business is a cartel, people just don't know it, and pay up.

Hi readers

Many have asked questions after doing the own research on our astrological stock.
One in particular question has been raised over 38 times.
Does FRM run a somewhat cartel with other producers to fix prices?
Your answers is in the question you ask!

Anytime companies produce a product that is a form of it.
Look at petrol companies?
Right now the oil industry. OPEC
Out to bankrupt shale research and international producers in Canada and America.
Yes while many can't work it out why would you sell below cost?
 You can only corner a market once you have eliminated the threat.
Right now this is going on and will continue, with iron ore, oil, coffee, cotton and many more.
Make in an unviable business once thats happened then your able to make those losses back in a very short space of time.
In Australia now we are seeing small vegetable growers leaving the industry.
Selling up and moving on because large producers are making it an unviable business by selling cheap there produce.(24% closed up in the last quarter)
Clean out all threats to then run prices on the public.
This occurred in the US back in the 1990 and we then saw prices run up and consumers paid up.
Yes Mother Nature can dictate how much produce can be produced but farms now are so advanced that once every 4-5 years weather will affect a yield.

We hear bullshit coming out Australia that this years wheat crop on the eastern boarder will be low due to weather drought , yet I know readers ( farmers)who have clearly said to me they will have record crops, yet will release only 30% of it .
That's call smart thinking farmers who have learnt the hard way about controlling prices.
That's why wheat is still holding good prices while soybeans have dropped in price with South American producers selling into the market at any price.

Same is happening with iron ore, that's why BHP will continue its fall, coffee with Vietnam selling at any price, and the Chinese with cotton.

Hope this Answers your questions.

To all farmers producers, mining firms, CEO's and traders who understands smart economics!
Supply demand is the name if the game, and will continue to be.
You always sell when everyone is buying and always buy when everyone is selling.
Contrarian may be but you will always make money doing it.
Timing is everything that's why you need a good astrologer to help you with timing.
That was my biggest lesson I learnt from a Japanese trader in 1991.






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