"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.
4 comments:
Is it Weimar Ben yet, or are you going directly to Zimbabwe Ben.
TVOH:
Why fool around? It's Zimbabwe Ben from here on out.
To be honest, now I'm scared (as if I wasn't before). I remember thinking the world was going to end in the late seventies when we were on the brink of becoming Argentina du Nord.
It is at the brink someone says time to change or plunges in completely. There is no compromise because that is now irrelevant.
Ben could put on the brakes, save the dollar and forever be known as Depression Ben or he could continue and it's Zimben.
I do fear the laws of inertia operate.
Whatever he does, history may not be as kind to him as it is to Volcker.
TVOH:
I felt much the same way between 1979-81. That we would become an Argentina or Mexico. I agree, history will not look back as favorably on ZimBen as Volker.
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