gabe borenstein

Today in Commodities: Inflation or Deflation?

Inflation is the least of the threats to the economies . The spike in some commodity prices especially gold ,is predicated on the past cyclical economic/commodity prices behavior. Until the current cycle ,every recovery was accompanied by excessive demand pull "forces" which had led to a cost push inflation.
The global implosion of 2008 has decimated global and consumer liquidity . Global focus at every level will and should be to restore this catalytic component of stability(liquidity).
In the U.S carefully applied "jolts" both monetary and fiscal will contribute to impressive and non inflationary economic expansion.
Gold?- is reflective of a global leveraged speculation based on the old notions.Other commodity prices will not go very far.
Inflation is not in the cards in the current cycle.