Wednesday, February 9, 2011
Ag Bubble
We have hit new 52 week highs in wheat, corn, and soybeans. Cotton, sugar, and the other softs have been parabolic. We are back to 2008 bubble levels. Brent crude oil hit 102. The weakness in NYMEX crude oil, which isn't a good global measure of crude oil prices right now, is masking a brewing commodity bubble. At some point, the Fed will have to admit that inflation is ramping up. If they keep their head in the sand and yell that there is no inflation, they will lose all credibility.
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1 comment:
The fed has an ego problem. Inflation is not anchored to monetary policy as they believe. It deflates when their engineered bubbles pop. Let the new wave of whoring begin. We've seen this movie before
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