What Caused this Gangbusters Commodity Boom?

Real Clear Markets ^ | 12/29/2010 | Daniel Dicker

[WeldonsRight]

Spot on! Swishing all that funny money around Wall Street and the big investment banks creates a lot of commissions and bonuses. They, in turn, stuff the pockets of their favorite politicians to keep the music playing. Meanwhile, my socks and undies double in price. I suppose we can get our pitchforks and go to D.C. to protest...oh, wait, gasoline will be $4.00 per gallon...

[arthurus]

Not a commodity boom so much as a dollar bust.

[Presbyterian Reporter]

Weak dollar?

____

The dollar is not weak relative to other currencies because all countries are printing their respective currency 24/7.

The result of increased phony money is that it has to go someplace.

Right now the newly printed money is going into things that are relatively scarce—copper, gold, oil.

I am not sure why it is going into wheat, corn, cotton etc as there does not seem to be a worldwide shortage.

But maybe the money folks are betting on global cooling and the impact it could have on foodstuffs.

[Presbyterian Reporter]

The US Dollar index was 78 at the beginning of 2010 and the index is 79.4 today.

Thus relative to the basket of currencies that compare to the US dollar index, the US Dollar is stronger today than it was one year ago.