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

To: Elroy Jetson who wrote (93784)	4/23/2008 2:15:36 PM
From: anachronist	Read Replies (1) \| Respond to of 110194

You are right, I did reply to the wrong post. I agree with you the rice shortage at costco is a trumped up story by the media looking to make something out of nothing. But the rise in commodity prices and its recent acceleration I believe are at due to : - government policies that debase our currency. - The rise of China and India - Misallocation of capital and wealth due to the credit bubble - Supply constraints due to a variety of factors from historic low investment in production capacity to poor harvests to exhaustion of natural resources To the extent that these factors continue, I expect that prices will continue to outpace inflation. If point 1 continues for much longer, the process will become self-reinforcing to the point that you will see a flight into hard goods.