A Commodities Bubble?

by BWK ~ April 10, 2008

OK, we are institutionally invested in the long term upwards commodity trends.

All the stars are lined up for further increases… Declining US dollar. Rising demand from developing world. Peak everything (geology). Peak everything (political restrictions). More people buying than selling, and the currency is depreciating. Looks like “up” to me, over the long haul.

But here are two views from quite different places… South Africa & Russia. Both writers are squeezing the worry-beads over the possibility of a sudden & violent commodities correction, if not crash. Are we missing something?

Is this much ado about nothing? Or is there something out there, like a landmine waiting to blow up under our feet?

If another Paul Volker comes along and tightens credit like the Boston Strangler? If the Tibet thing blows up in China and the economy hits the brakes? If the US recession really is as bad as we say it is, and the economy drops off a cliff? What’s out there???

Worth pondering…

Best, BWK

Note: Byron King is a frequent contributor to the free e-letter Whiskey & Gunpowder. To receive daily insights into energy, oil, commodities and other natural resources sign up here!

Additional Resources:
The U.S. Strategic Stockpile Is Gone…Now What?
Price of Wheat is Soaring - Are We Reaching “Peak Food”?
The Worldwide Resource War is just beginning