Nonsense. All commodity prices are going up. There is no shortage of land as there was no shortage of land last year.
All commodity prices are rising from wheat to copper, steel, oil, burlap, and just about anything. They are all rising at the same time and at the same relentless pace.
The experts are busy trying to explain this trend because of shortage of capacity. How can we have shortage of capacity when the economy is not growing for the past 6 months and the global economy is slowing down?
Nonsense. Al commodities are going up because of the bad policies of the US. The outcome of these policies is a sagging dollar and soaring commodities (the other side of the coin).
We have had two very poor leaders at the Fed. They have been late in recognizing the problems and agreed that the only way out of difficulties is cheap money.
But cheap money creates inflation.
Rising inflation has caused a recession. Lower commodities will follow the recession. And the commodity experts will be out of business as the populace becomes worried about something else.
Then, as in 2002, some will start talking about deflation.
And the business cycle and its consequences will be repeating on and on (please read my book Profiting in Bull or Bear Markets for details or subscribe to my service), keeping the experts busy on why we have commodity booms and busts.
When everything fails, they will bring up China.
More, much more on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
No comments:
Post a Comment