bowman711

Commodities Meltdown as Dollar Surges

I should add that I think a more likely explaination of what is happening to commodities than trying to influence an election is this:

As everyone knows, the Chinese (and others in a similar position) hold hundreds of billions of the U.S. debt. They also see what is happening in the 'credit crisis' and that the U.S. is facing it by printing untold more dollars, thus devaluing every dollar-denominated entity already held in by the Chinese. Not wanting to see further erosion of their wealth, they have let the Fed and the Bush government know that they want out of dollars.

A sudden dumping of hundreds of billions of dollar debt would likely cause the end of the 'full faith & credit' in the U.S. dollar. [The Euro would likely take its place as the world currency.] So, to save the dollar, the Government might have made an agreement with the Chinese to supress commodities so the Chinese could exchange their dollar for commodities. The 2008 G8 Foreign Ministers Meeting was in late June, and it seems that the real attacks on commodities started a couple of weeks later. Coincidence? Maybe not.