The folks at Hard Assets Investor, who I sometimes write guest pieces for, got a hold of famed trader Dennis Gartman. The interview is well worth a read, and you can access it here.
Gartman is quite bearish on the euro, and expects that gold will soon surpass it as the #2 reserve currency in the world:
I think that the euro is now topped out dramatically. I think the problems in Europe are so severe that we’re going to wake up one day and find that the euro is no longer traded; whether that’s next week or next month or next year, I don’t know. But the problems in Europe are much worse than all the problems here in the United States, fiscally. Except for Germany.
Even more interesting to me, though, from an investment perspective, was Gartman’s take that high corn prices this year are going to bring extremely low livestock supply for year:
We’ve not been able to get the corn crop adequately in the ground, and that’s going to be a real problem for corn this year. The problem for corn next year will be that livestock producers are absolutely dumping livestock on the market because nobody can feed hogs, chickens and cattle at $7.50 for corn. You just can’t do it.
So they’ve been dumping underweight hogs, underweight cattle, just so they don’t have to feed them high-priced corn. That’s putting downward pressure upon livestock prices. But what it also means is you’re removing all of next year’s livestock from the market. Next year we’re going to be so short of livestock it’s going to be frightening.
Time to start stocking up on next year’s livestock futures contracts, perhaps?