Posted on 04/27/2006 6:09:51 AM PDT by rellimpank
What to think.
Confirmation that the ongoing rise in commodity prices is of economic origin and not a worrisome monetary phenomenon comes from a Kudlow & Co. survey of 51 of the world’s larger economies, representing approximately 94 percent of global GDP. The data reveal a strong tandem relationship between the commodity price swings of recent years and the contraction and expansion of the global marketplace.
Nominal GDP for the economies surveyed ended 2005 at $41.6 trillion (in current U.S. dollars), up 0.4 percent from the prior quarter and 5.1 percent above its year-earlier level. More significant, since the global contraction of 2000-01, these economies have expanded by a cumulative 41.7 percent in nominal terms, averaging per annum growth of 9.3 percent. The Commodity Research Bureau (CRB) Index over the same period was on an almost identical track, rising 85.7 percent from its January 2002 trough.
(Excerpt) Read more at nationalreview.com ...
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