By Catherine Austin Fitts
The extraordinary divergence between the prices of commodities and equities this year can be seen in a chart of Starbucks. The lower the cost of goods becomes (in this case coffee), the greater the profitability, the higher the shares go. Adding a touch of sweetness for Starbucks, sugar was down too.
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Given that the increased earnings in the S&P was driven by share buybacks, financed with debt issuance that took advantage of relatively low interest rates, the North American stock market continues to be the beneficiary of a unique combination of Fed QE and global deflation.
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Home>Coffee Has Longest Fall Since ’72, Oversupply Woe
