While demand in China will remain strong, BHP (BHP) forecasts, the growth in mineral prices will...

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Arthur Fisher Comments (65)
 
The other question for the future of BHP is the relation between commodities and inflation on the next upturn of the cycle. Democracies, and perhaps all governments, invariably inflate. It's a time-honored tool of government finance, effectively stealing from fixed-income stakeholders to pay for new initiatives of every sort. In the past five years, we seem to have forgotten this fact, or to have thought of it only as a depreciation of the currency. Nonetheless, it is still out there waiting for us.
24 Feb, 05:42 AM Reply Like

kmi Comments (3844)
 
One wonders how it is that folks have forgotten that commodity prices move in cycles and are bound to eventually contract.

The prevailing opinion seems to be that commodity pricing will rise forever, and inflation is inevitable, neither of which I suspect are on near term horizons.

There has been some pretty significant expansion of capacity over the last decade and the economic cycle doesn't seem to imply we need it anymore. It will be interesting to watch, in particular in light of the inflation expectations many harbor.
24 Feb, 08:18 AM Reply Like

june1234 Comments (931)
 
Gold isn't the only thing going down Copper hit a 13 month low Ags are ugly. Not for the energy sector we would already be seeing beginnings of deflation
24 Feb, 10:15 AM Reply Like

Whitehawk Comments (2809)
 
Disinflation.
24 Feb, 01:23 PM Reply Like

Whitehawk Comments (2809)
 
Miners have to focus on cutting costs, which are high and going higher. They will also scale back production, constraining supply when pricing is weak. They have the upper hand here eventually, with currency wars in play.
24 Feb, 01:20 PM Reply Like