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The Great Commodities Heist

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (TheStreet) -- It is all so very simple when we view the big picture.

Bankrupt and near-bankrupt Western governments are stealing billions of dollars worth of various commodities from commodity-producers around the world. The evidence goes well beyond merely suggestive -- into the realm of absolutely conclusive.

What makes this scenario so unequivocal is that we have the equivalent of "signed confessions" of the crimes these governments are committing. Exhibit "A" is the monetary policy titled with the vile euphemism "competitive devaluation. " It is the deliberate attempt by governments to destroy the value of their currencies -- as fast as possible (i.e. "competitively").

Destroying the value of our currencies as rapidly as possible means exactly the same thing as raising prices as fast as possible. Which brings us to global commodity markets. If our governments (primarily Western governments) are deliberately trying to raise prices as fast as possible with their excessive money-printing, how can commodities prices have tumbled so far?

Arithmetic tells us there is only one possible answer. Global commodity markets have been fraudulently manipulated lower through the use of the primarily "paper" futures markets. Given the scope and magnitude of this commodities take-down, it can only be the result of coordinated actions by many governments and the multinational bankers who pull their strings.

The prime suspects are the Western deadbeat-debtors, who are nearly all large importers of commodities, and the major commodity importers -- with Japan and now China being the obvious culprits. The arithmetic here is absolute: As long as our governments engage in competitive devaluation, the price of everything can only go higher.

There is but one exception to this simple equation: any good and/or service for which there is excessive supply. The obvious example here is the U.S. housing market. With the most grossly over-supplied housing market in human history (and a market saturated with fraud), the downward price-pressure caused by this massive housing glut currently exceeds the upward inflationary pressures of competitive devaluation.

The situation in commodity markets is also unequivocal: Stockpiles of almost all commodities are either at historical averages, below historical averages, or already at critical levels. In other words, in terms of economic fundamentals there is no downward pressure on prices -- only (additional) upward pressure. There can be no rational or economic explanation for the severe plunges in commodity prices other than the fraudulent manipulation of markets.

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