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Common wisdom holds that depressions are inherently deflationary. The United States in the 1930’s. Japan in the 1990’s and 2000’s. Combine a depression with other deflationary factors going today in the US – demographics, deleveraging, falling asset prices, even productivity – and you’ve got some serious deflationary headwinds. (As a side note – I’ve warmed […]
Milton Friedman said that inflation is “always and everywhere a monetary phenomenon.” Judging by the recent price action in many of the soft and agricultural commodities, they appear to agree. Ben Bernanke, a student of the Great Depression, is making a bet the Friedman was wrong. Bernanke believes that because Friedman did much of his […]
Sugar Futures Surge to a 6-Month High Sugar futures rallied nearly 4% on Friday, over half a cent, to close the week at 14.18. Looks like we’ve got a new breakout to the upside! Sugar futures continue their steady climb. (Source: Barchart.com) The market continued to focus on the news that India may turn into […]
For a few weeks now, we’ve been watching the commodity markets with rapt attention, asking ourselves: “Has the next commodity bull market officially begun?” From the charts, it looks like broader commodity indeces may have finally formed a bottom. Source: BarChart.com So if the wind is indeed once again at the back of us commodity […]
Have Orange Juice futures finally found a bottom? May Orange Juice futures gained nearly 10% this week, on speculation that drought conditions in Florida could damper yields. As you can see, OJ has been in free fall over the past 14 months, dropping roughly in half from peak to trough. Prices appear to have been […]
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