tk77mann

Who's to Blame for the Commodities Boom?

The real fix to overheated US prices is to stop the record government deficits and record import deficits. Commodity prices are high because the US dollar has been weakened so much by our government and its policies, especially in the past seven years. The rest of the world is just adjusting the value of our currency to acknowledge its true value. Commodities are just another asset whose price in US dollars is adjusting / weakening, much like foreign currencies.

World demand for commodities is not going to be limited by the rest of the world, who wants our lifestyle and quality and choice of products.

The US standard of living is coming down whether we like it or not. We have to pay the piper for our economic excesses.