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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Earlie who wrote (51249)5/16/2006 6:20:39 PM
From: regli  Read Replies (1) of 116555
 
'And of course, as we both know, commodities tend to fall in price over time."

I don't believe that this will be the case in the foreseeable future (30 to 50 years), at least not across the board.

Humanity is depleting resources all over the planet and as climate change illustrates, our ability to exploit the environment to our own detriment is proceeding at an ever increasing pace. This is also the case with resources which are depleting in some instances quite fast.

Yale Study: Not Enough Metals In Earth To Meet Global Demand
sciencedaily.com

I believe that the biggest contributor to falling resources prices in history was ever cheaper energy. With energy costs likely to increase in real terms over the next half century before cost effective alternatives are developed, I don't expect resource prices to decline and in fact I expect them to increase potentially significantly due to their increased scarcity. Things are different this time, maybe not in the short run but definitely for the longer term.
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