Antidote du Jour Posted on December 27, 2010 by Yves Smith Post navigation ← “Summer” Rerun: CNBC Publicizes This Blog Bewildering Array of Choices for any American Voters Who Think the First Amendment might be Applicable to Wikileaks → Subscribe to Post Comments 6 comments psychohistorian December 27, 2010 at 2:24 am This is the answer to the posting below of what is going to happen in 2011. The real bear is going to show that fake bear (that seemingly can speak no evil) and represents what we just “recovered” from what it means to be a bear……but since its just a baby bear we either don’t suffer as much or “grow up” in bear land for a while. No bull! attempter December 27, 2010 at 2:28 am I can’t “bear” it: More Krugman austerity insinuations: http://www.nytimes.com/2010/12/27/opinion/27krugman.html?ref=opinion It will require that we gradually change the way we live, adapting our economy and our lifestyles to the reality of more expensive resources. Surely he’s referring to how underlying resource limits must be faced, but only after we’ve eradicated our artifically imposed problems with criminal rent parasites like commodity speculators? Not quite: Oil is back above $90 a barrel. Copper and cotton have hit record highs. Wheat and corn prices are way up. Over all, world commodity prices have risen by a quarter in the past six months. So what’s the meaning of this surge? Is it speculation run amok? Is it the result of excessive money creation, a harbinger of runaway inflation just around the corner? No and no. What the commodity markets are telling us is that we’re living in a finite world, in which the rapid growth of emerging economies is placing pressure on limited supplies of raw materials, pushing up their prices. And America is, for the most part, just a bystander in this story. Where have we heard that argument before? Who made exactly that same argument the last big commodity surge, in 2008? None other than George Bush. So once again we see how simpatico Krugman and Bush really are; they’re simply on opposing teams, cadres for competing criminal gangs. But they both believe the purpose of humanity is to serve as prey for the likes of commodity speculators. So let’s recap the Krugman ideology: Commodity speculators are fine, we had to bail out the banks, the health racket bailout was not only necessary but “progressive”, and there’s no class war. These are all explicit tenets of his. So we must live as slaves to this feudal rentier tyranny. And meanwhile: It will require that we gradually change the way we live, adapting our economy and our lifestyles to the reality of more expensive resources. Juxtaposed with his Bushian extenuations of the finance sector, that sounds like “austerity” to me. Alan Simpson or Trichet couldn’t have put it any better. paper mac December 27, 2010 at 3:04 am IIRC, Krugman’s contemporary view was that the runup in oil prices in ’08 reflected underlying supply/demand fundamentals rather than speculative or other pressures. I don’t know why anyone bothers listening to the guy. attempter December 27, 2010 at 5:24 am Yes, although he probably would prefer not to acknowledge Peak Oil, he’d rather do that if it helps extenuate the robbers. But dealing with crime must be prior to dealing with underlying resource limitations. If we have one loaf of bread to last us the week, we have a food limitation problem. But if someone’s also trying to steal our loaf, we’d better consider that theft our first problem. But as we see here, Krugman’s goal is to befog the issue, cover up the crime, and tell us we never had a loaf in the first place. I just shovelled snow for 90 minutes. I kept picturing it being the lies the NYT shovels. Cynthia December 27, 2010 at 11:23 am Even though I agree wholeheartedly with Krugman that “peak commodities” — anything from copper and crude oil to cotton, corn and cows — are all for real, it seems pretty obvious to me that this rather sudden surge in commodity prices is the sinister handiwork of speculators. If I’m right on this, then it’s fairly safe to say that Krugman has once again lost sight of the fact the that speculators are doing a repeat performance of what they did back in the spring and summer of 2008, which is to re-pump up commodities with the aim in mind to re-dump them as soon as the bubble in the stock market re-burst. Even though I’m not a betting woman, I’m willing to bet money on it that what is going on in commodities is more about “bubble economics” than it about “peak commodities”. Skippy December 27, 2010 at 5:09 am Control is expensive. Pressure is cost. Cannibalism or Anthropology. Comments are closed. Tip Jar Please Donate or Subscribe!