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

To: GraceZ who wrote (54537)	2/23/2006 5:19:21 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 110194

The world's poorest people are now using commodities that they couldn't dream of affording 50 years ago. This simple fact tells you that commodities are getting cheaper in a real sense. that is a very tortured logic. oil cost $11 a barrel a few years ago and is now $60. more people may be using it than before--people who couldn't afford cars now have them in China. but that is because they got richer; NOT because oil is cheaper. the way we know commodities have gotten more expensive is very simple--their real price has gone up. the fact that people who couldn't afford them before can afford them now means their real incomes have increased more rapidly than commodity price inflation. that is fairly easy to do when your income goes from 50 cents a day to $10 a day.