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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Ramsey Su who wrote (3342)12/13/2003 12:07:18 PM
From: mishedlo  Respond to of 110194
 
Here is an interesting thought on commodities from Plunger on my board on the FOOL. It is in response to a post from someone who suggested commodoties are shoing inflation. Quite interesting response.
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Yes the CRB is going up, but it's no higher than it was in 1996-97, and 1988, and it's now lower than it was back in 1984.

Compare that to wage inflation and we can see that commodities are not exactly expensive.

But the point we are making is that the financial system requires people to be able to repay their debts, and they have to do this from wages ultimately. So the Fed needs to generate WAGE inflation, which they are unable to do. Wages it what will cause them to pull the trigger, and one more notch down is my forecast for their next change.

Commodities are for trading and investing in. There is a future on the CRB index.

But what use is a US rate hike going to be against the rest of the world buying commodities? It won't stop the USD falling and won't stop commodity prices rising but will will just put a few more people out of work.

Why would the Fed do that??

Plunger.
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stockcharts.com[w,a]waclyyay[df][pb50!b200][vc60][iUb14!La12,26,9]&pref=G

Can someone post this going back more that 3 years.
I would like a monthly chart going back as far as it can
I can not find a monthly option

Thanks

M