High Prices: The Cure For High Prices

With the exception of the loony-tunes gold and silver markets, all commodities speculators are going to learn this lesson.This reality of prices also destroys the "commodities are bringing on inflation" argument. Commodities cannot keep inflating. Indeed, they often bust.

The lesson 'investors' will learn is that don't trust the 'unregulated', opaque, random, and political regulatory margin authorities. The five fold increase of margin in ONE week stinks to high heaven. Why don't 'they do the same thing in 'their bond, currency, or S&P markets? This is ALL about crushing the inflation canary in the coal mine to reinflate horrific debt levels and further devalue a once strong and proud currency!

Trading-You mean speculators were driving the market?

Speculators drive nothing. Only 'real demand' will drive markets. Not even the FED can continue to keep interest rates at zero while devaluing the currency for the long term. Just wait until that 'ticking time bomb' blows up! I'm guessing it will be after the NEXT election tho!Currently the 'regulators' are too busy investigating B Madoff who made $50b disappear - as opposed to themselves who made $10 trillion of credit disappear!

Trading-If speculators drive nothing, why did increasing margin calls result in commodity price reversals? And, since M2 is increasing at about the same 6 percent annual arte as it ever did, how do we get to serious inflation?

BTW the Dow Jones-UBS Commodity Index℠ is now at the same level it was in late 2005. The story on "commodities inflation" may not be so one-dimensional.

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