I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
Wednesday, August 21, 2013
Food vs. Industrial Commodities
Click to enlarge.
The housing bubble created some "pent-down" demand for industrial commodities (relative to food). Big shocker.
I'm sure there was pent-down demand vs. food in the run up to the bubble pop. Notice that is levels out around 2000. I suggest that high oil prices as an input to food production will keep food inflation competitive with other commodities going forward.
This actually gives me an idea for another post, if I have time to get to it today.
I'm sure there was pent-down demand vs. food in the run up to the bubble pop. Notice that is levels out around 2000. I suggest that high oil prices as an input to food production will keep food inflation competitive with other commodities going forward.
ReplyDeleteThis actually gives me an idea for another post, if I have time to get to it today.
Mr Slippery,
ReplyDeleteFor what it is worth, I expect Great Recession II to put downward pressure on industrial commodities.
I just don't believe in the China story long-term.