Could somebody please tell the commodity price party to keep the noise down-the U.S. economy is trying to sleep. The Reuters/Jefferies CRB Future Price Index for Commodities came within a heartbeat of establishing another record high this week, led by $116 oil. While it’s tempting, to dismiss the persistent commodity surge as speculative, the inconvenient counter-point to that theory is that many non-exchange traded prices are ramping up even more quickly (e.g..iron, potash). Is it possible that while the bulk of the financial world was busy navel-gazing at the “worst crisis since the depression”, it may have overlooked a potentially bigger and more lasting problem hurtling down the mountain i.e. raging global inflation pressures?
Many have been calling for a softening U.S. economy to undercut strong commodity prices. It’s increasingly looking like those tables have been turned-persistently strong commodities are threatening to further undercut a struggling US economy. That is, the ongoing strength in food and oil prices themselves will act as an added drag on U.S. growth, by sapping consumer spending power. The challenge for the global economy would be if commodity prices kept rising even if the US$ begins to find firm footing.
http://www.forexforexforexforex.com
Related Websites - It Was Only A Matter of Time: Oil Hits All Time High Oil prices are just ridiculous! Oil futures jumped to a new record close of $90.46 a barrel Thursday on news that OPEC production increases aren't coming as fast as expected and that the cartel won't announce new output quotas when...
- How to Survive (and Possibly Thrive during) Stagflation. Stagflation. The dreaded "S" word. Stagflation is loosely defined as an economic environment in which inflation is rising, while economic growth (or wage growth) is stagnant or declining. It's often characterized by high unemployment, and rising prices (high inflation) -...
- Median Home Prices and The 'Double Dip' A 20 second scan of the headlines for the real estate tab on this blog will show you I've been bearish on U.S. real estate since this blog began several years ago, but I'm thinking it might be time to...
- When Buy & Hold Works and When It Doesn't This post was written by Tony. Simply put, buy and hold is an investment strategy that is favored by many investors. In case you don't know what buy and hold is, here is an excerpt of its definition from one of my blog posts....