Detailed market commentary at The Market Ticker
(The Year 2012 In Review)
You are not signed on; if you are a visitor please register for a free account!
|MarketTicker Forums Single Post Display (Show in context)||
User: Not logged on
|User Info||So What 'Ya Gonna Do Now Ben?; entered at 2011-05-04 14:17:20|
Registered: 2009-03-24 Denmark
The correlation between on the one side commodity and food price inflation and on the other side FED acting as Treasury debt buyer of last resort is easy to see (courtesy of Seeking Alpha):|
This magic monetary policy is bringing down the dollar and as soon as Bernanke shuts down the monetizing programme, the price of holding commodities will rise even without Ben trying to raise interest rates which he cannot do ... that is, bubbles in metals, oil, and food could be about to burst.
For another way of interpreting the correlation depicted above, using the price of bread around the world over time as a proxy for price inflation, see todays Daily Telegraph: