Yes gold is at a new record high today but other commodities as measured by the CRB index are about to break upwards to the highest since January. Cotton is at a fresh 15 year high, coffee is rallying to just shy of a 13 yr high, corn is approaching $5 per bushel for the 1st time since Sept ’08 and sugar is at the highest since late Feb. Also, the CRB raw industrials (a sub index), which includes other basic commodities, is just 2% from an all time record high reached in May ’08. Sorry to be a broken record (a CD for those that don’t remember), again, but the Fed wants inflation as they made the rest of us believe that deflation is the Boogeyman and its easier to pay off debts with inflated money (as opposed to writing it off or paying it down) but they should explain to the average American how a higher cost of living is a good thing when demand for goods and services is soft because of a sluggish labor market and in a period of deleveraging.
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