The Truth About Commodities, including Oil - Complete Speculation

[Landis82]

Quote from sprstpd:

The fault of the meteoric commodity rise can be placed squarely on the Fed's shoulders. By setting interest rates artificially low and by pumping money into the system like there is no tomorrow, the Fed is the root of the commodity problem. If the US would have the courage to raise rates, watch how fast the commodities would drop. I wouldn't hold your breath though - nobody in the US has any cojones apparently.

I.e., even if there is no fundamental demand for commodities, I am sure going to place my money in them while the Fed continues to debase the currency.

You ( as well as a whole host of other "Helicopter Ben" Bashers ) have conveniently avoided addressing the lack of SUPPLY in the commodity complex.

As "Daal" posted earlier in this thread, there are commodities out there that are looking at huge HISTORIC shortfalls in SUPPLY. Meanwhile, the "middle" class in India is 300 million people - - - more than the total population of the United States!

This has absolutely NOTHING to do with the Fed.

But as usual, the "bashers" on ET are only able to see things in a rather naive "one-dimensional" view.

 

[sprstpd]

Quote from Landis82:

This has absolutely NOTHING to do with the Fed.

I never proposed anything about supply and demand in my post. Regardless of how much supply and demand there is for commodities, if the currency that everything is priced in falls like the US dollar has, then commodities will naturally go up. So your point that it has absolutely nothing to do with the Fed seems idiotic to me.

 

[Cutten]

Quote from sprstpd:

I never proposed anything about supply and demand in my post. Regardless of how much supply and demand there is for commodities, if the currency that everything is priced in falls like the US dollar has, then commodities will naturally go up. So your point that it has absolutely nothing to do with the Fed seems idiotic to me.

Commodities have risen substantially in non-dollar terms too. If your point was correct then commodities would be flat in Euro or Yen terms, rather than up multiples.

 

[Cesko]

Another huge mess....and this time, the developing world have every reason to complain about unregulated capitalism....

Medicine, food, education, and shelter are human needs and rights....

Capitalism in this form....and Cuban type socialism ....are both very unattractive....

There are better approaches than these....

How do you know where "unregulated capitalism" ends and stupid regulation begins????
What better approach?? Unfortunately there is no specific answer for that.So I am not gonna ask since you don't know.
Medicine,food, education and shelter are just needs not rights. Let's say I decide not to do anything in my life. I mean absolutely nothing. I just wanna be a bum. If the food is my right to have, it means others have responsibility to provide it for me. Which is of course bullshit.

Reg. oil futures, it's funny the same caliber of people who until not so long ago bitched incessantly about inflation
causing commodities run-up now bitch about speculators. The words supply,demand never cross their minds.

 

[sprstpd]

Quote from Cutten:

Commodities have risen substantially in non-dollar terms too. If your point was correct then commodities would be flat in Euro or Yen terms, rather than up multiples.

All interest rates are underreporting inflation in all currencies.

 

[Shagi]

The bottom line is those that can't make a living trading are suggesting speculation is causing price spikes.

Ban commodities margin trading equals to price fixing, then you will know the meaning of price spikes.

True Traders trade to put food on the table not speculate about useless economic theories

 

[Shagi]

Now that wheat is tanking fast, so where is the credit to those powerful traders helping mankind with cheap wheat? oooh no its rogue traders taking a hammering

 

[Shagi]

ooo no its those same traders beating wheat down doing mankind a favour who have now have turned on mankind driving rice prices up

 

[Shagi]

now look what have they done to sugar - its up and now its down so why not ban speculators for helping mankind?

 

[Shagi]

Now look at what they have been doing buying euros and selling dollars for the past 3 years because they are speculating about the value of the dollar - what a bunch of idiots!!! I GIVE UP!!!!