Oct 012010
For those who believe deflation is the risk, you might want to try and explain the 20 percent plus annual increases in many commodities. In an article in Financial Sense, a list of 16 commodities is presented. The minimum annual increase is 20%; the maximum over 100%. This is in just one year!
Here is the list:
COMMODITY PRICE % INCREASES YEAR OVER YEAR
Agricultural Raw Materials 24% Industrial Inputs Index 25% Metals Price Index 26% Coffee 45% Barley 32% Oranges 35% Beef 23% Pork 68% Salmon 30% Sugar 24% Wool 20% Cotton 40% Palm Oil 26% Hides 25% Rubber 62% Iron Ore 103%
These increases will be hitting the retail level shortly.
[...] The Gold Bubble? What Gold Bubble? Filed under: investment tips — P. W. Dunn @ 7:57 pm Tags: deflation, gold, hyperinflation, inflation Monty Pelerin produced the following list on his blog today: [...]
Gold is up only 30% over the same period. Why do people talk about a gold bubble? It would make more sense to talk about an iron ore bubble, a rubber bubble or a cotton bubble. What about the oranges bubble? The gold bubble? What gold bubble?
[...] This post was mentioned on Twitter by Nick Campbell, Monty Pelerin. Monty Pelerin said: Blog post: Not What I Would Label Deflation http://www.economicnoise.com/2010/10/01/not-what-i-would-label-deflation/ [...]