Bank of Japan Points Finger At Federal Reserve For Oil, Food, Other Rising Prices

[30 cal slut]

Worth a read, if you're so inclined. Not just for finance nerds like myself.

Full .pdf here:

https://www.boj.or.jp/en/research/wps_rev/rev_2011/data/rev11e02.pdf

Summary:



Global commodity prices have been rising again since 2009, and particularly rapidly since the fall of 2010. While the strong increase in commodity prices has been driven by global economic growth propelled by emerging economies, speculative investment flows into commodity markets have amplified the intensity of the price surge. The dynamics of global commodity prices has been changing as well, in accordance with the growing presence of financial investors in commodity markets. The entry of new financial investors has paved the way for the “financialization of commodities”. Consequently, global commodity markets have become more sensitive to portfolio rebalancing by financial investors, which has made commodity markets more correlated with other asset markets, including major equity markets. Furthermore, globally accommodative monetary conditions have played an important role in the surge in commodity prices, both by stimulating physical demand for commodities and driving more investment flows into financialized commodity
markets.

[czydj]

I keyed in on the graphs showing emerging markets / developing countries chowing down while the developed countries piece of pie gets smaller and smaller. We really need to start growing American again. Enough of the offshoring and building elsewhere.

[chadbag]

I keyed in on the graphs showing emerging markets / developing countries chowing down while the developed countries piece of pie gets smaller and smaller. We really need to start growing American again. Enough of the offshoring and building elsewhere.

While I agree with your solution, make sure that the overall pie is not growing as well. In other words, while America's percentage of the global pie may be going down, that does not mean in real terms that Americas overall amount if getting smaller. If the pie is getting bigger, America is keeping its piece and others are getting more as well.

[Armati]

Austrian Economics.

Ron Paul "End the Fed."

http://www.amazon.com/End-Fed-Ron-Paul/dp/0446549193

"The Great Reckoning"

http://www.amazon.com/Great-Reckoning-Protecting-Yourself-Depression/dp/0671885286

A lot of this stuff has already happened and we are continuing to spiral toward a global financial disaster.