Inflation vs. Deflation
A while ago we were debating a slowdown in the U.S. and if that would cause inflation or deflation. It looks to me like we have our answer. Iron ore prices were locked in +70% year over year. Oil, Copper, Grain, Gold/Silver, Platinum, all pushing record high proices. The USD tumbles again this morning. Inflation is raging in China and they will export higher prices to the world.
OPEC is behind Canada, Mexico, and South America, as far as supplying oil to the US. The truth of the matter is that oil production is not keeping up with demand. The monster oil fields are in decline and can't be replaced. Cheap oil is gone and it isn't coming back. To say OPEC has everything to do with oil prices is simply false.
Oil, Gold/Silver, Fertilizer remain the places to be.
Invest in the "stuff" the world needs.
Kipp
