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Posted on 02/09/2011 11:42:24 AM PST by FromLori
Commodity prices could squeeze economy, just as in 2008
China's central bank raised interest rates for the third time in four months, and undoubtedly not the last time, to counter the growing inflation that is besetting fast-growing emerging economies.
That inflation so far is visible mainly in the price of commodities (presuming rising asset prices are not counted in the calculation.) And based on the Continuous Commodity Index, an equal-weighted gauge of prices, commodities have exceeded their old highs set in 2008 and have set a new record, according to Bank of America Merrill Lynch's technical analysis team led by Mary Ann Bartels.
Energy, grains and metals all have participated in the advance to new highs without the headline-grabbing price of crude oil topping $100 a barrel and retail U.S. gasoline prices hitting $4 a gallon, as they did in 2008.
Should I repost this or would you please link it? My apologies.
a populist jihad against commodity trading by “greedy speculators” is no doubt in the offing