Robert Trudeau

Why New Oil Price Highs?

You're right. It isn't entirely explained by changes in demand or the dollar. Speculation also seems to be part of the problem. But wouldn't negative real interest rates lead to lower prices not higher? Why save or hold dollars when they buy more today? Is this your point? Where are they storing all the rice, wheat, milk, corn, etc. I can understand leaving oil, gas, metals, etc. in the ground but not food. Are we suddenly eating more globally? Wouldn't this have more to do with all the money (yuan, dollars, euros) sloshing around than with negative real US interest rates? The answer can't be so simple. What would you have the Fed do, raise interest rates to bring down commodity prices? Good for me, but bad for the ecomony.

Why New Oil Price Highs?

I don't quite understand what you are saying. Are you stating that commodity prices are up because those accepting dollars in payment are getting a negative real return while holding dollars? I'm not sure what the price of rice in India has to do with interest rates in the US.

Why New Oil Price Highs?

Screw Ron Paul.