Comments on: Martin Wolf Worries About Rising Commodity Prices http://www.nakedcapitalism.com/2008/03/martin-wolf-worries-about-rising.html Mon, 23 Nov 2009 11:36:25 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/03/martin-wolf-worries-about-rising.html#comment-4762 Anonymous Wed, 05 Mar 2008 23:07:00 +0000 http://www.nakedcapitalism.com/2008/03/martin-wolf-worries-about-rising-commodity-prices/#comment-4762 The more the FED cuts the farther the dollar will fall and the higher commodity prices will rise. If you don't have a hedge for this insane money printing to prop up asset prices and bail out insolvent banks you going to be slashed to death by a thousand cuts. This is the new bubble and it will pop only when the FED raises rates again. This is the path of the last two bubbles and this one will be no different. The more the FED cuts the farther the dollar will fall and the higher commodity prices will rise. If you don’t have a hedge for this insane money printing to prop up asset prices and bail out insolvent banks you going to be slashed to death by a thousand cuts. This is the new bubble and it will pop only when the FED raises rates again. This is the path of the last two bubbles and this one will be no different.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/martin-wolf-worries-about-rising.html#comment-4760 Anonymous Wed, 05 Mar 2008 21:53:00 +0000 http://www.nakedcapitalism.com/2008/03/martin-wolf-worries-about-rising-commodity-prices/#comment-4760 Overconsumption<br/> and<br/>speculation<br/><br/>Two problems that could be solved with a minimal price.<br/><br/>Overconsumption:<br/><br/>A card that must be passed and add a tax for things you bought that look excessive (chips, luxury car and second house)<br/><br/>Speculation:<br/><br/>tobin tax to offset inflation caused by speculation. Overconsumption
and
speculation

Two problems that could be solved with a minimal price.

Overconsumption:

A card that must be passed and add a tax for things you bought that look excessive (chips, luxury car and second house)

Speculation:

tobin tax to offset inflation caused by speculation.

]]> By: s http://www.nakedcapitalism.com/2008/03/martin-wolf-worries-about-rising.html#comment-4745 s Wed, 05 Mar 2008 12:05:00 +0000 http://www.nakedcapitalism.com/2008/03/martin-wolf-worries-about-rising-commodity-prices/#comment-4745 The fed says almost every dau via one of its consuits that it does not care about inflation. BAse metals uspply dremand dynamics are obfuscated by the China syndrome. I suspect China will protect industialization at all costs and hence there will be an underlying bid for the metals complex (and ag too perhaps). That said even though the cost curve is increasing prices remian well abve LT equilibrium. How long this last best guess. In the meantime, we are told everyday that headline doesnt matter. The fed is destroying itself - if only the American people knew and could act. The argument that the euro is looking more like a reserve currency gets stronger with every ECB meeting. The fed says almost every dau via one of its consuits that it does not care about inflation. BAse metals uspply dremand dynamics are obfuscated by the China syndrome. I suspect China will protect industialization at all costs and hence there will be an underlying bid for the metals complex (and ag too perhaps). That said even though the cost curve is increasing prices remian well abve LT equilibrium. How long this last best guess. In the meantime, we are told everyday that headline doesnt matter. The fed is destroying itself – if only the American people knew and could act. The argument that the euro is looking more like a reserve currency gets stronger with every ECB meeting.

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