Tuesday, July 8, 2008
Helicopter Ben's No Confidence Vote
"In a sign that any pause is little more than a chance to catch its breath, commodities markets surged, with crude-oil futures reaching yet another record and gold making its largest one-day move in 23 years. ... Soaring prices for raw materials and crops have confounded Washington, prompting lawmakers to summon regulators, oil traders and economists to testify in recent weeks about whether, beyond the challenge of meeting relentless world-wide demand, speculative trading is causing a price bubble. ... Also contributing to oil's rally were concerns about inflation, as the [Fed] on Wednesday decided to keep interest rates--a potential inflation weapon--unchanged. ... Silver matched [gold's] leap percentage-wise, hitting $17.1230 a troy ounce. Other commodities shared in the love, including agricultual products, led by a leap in corn and wheat prices", Carolyn Cui at the WSJ, 27 June 2008.
"Love" or fear? We are seeing the dollar melt before our eyes. Got gold? Get more.