The question is how much pain it is going to take till reality comes back into the market. And yes, I suspect this is going to get a lot of Dems elected in 06 and 08.
Just heard today that orders in my field and ticking down. We make a feedstock for many foods (protein), and the buyers are scaling back due to high shipping costs.
I have been in commodity markets for awhile, and I have a feeling that this is the opening round in a down turn. The price for everything is going up, but the household incomes will not match the increases in the short term. That means many people are going to have to cut back. Which just increases the problem as sales decline, causing prices to rise or production cut back etc.