Wednesday, January 19, 2011 9:10:20 AM
here
U.S. investors should welcome, not fear, climbing commodity prices.
The increases are “largely a reflection of the fact that the pace of economic growth, ( what growth???? )particularly in the U.S., has picked up,” saidNariman Behravesh, chief economist at consultants IHS in Lexington, Massachusetts, and a former Federal Reserve official who has been covering the global economy for more than 35 years. “It’s not something to be worried about.” ( for who????)
The Standard & Poor’s GSCI Spot Index of 24 commodities has climbed 24 percent during the past year to its highest level since September 2008 as prices of raw materials from oil and copper to wheat and cotton have increased. That has prompted investor concerns that that rising energy and other costs might derail the U.S. recovery by robbing consumers of purchasing power and pinching corporate profit margins.
History suggests they’re wrong to be concerned, said Michael Darda, chief economist for MKM Partners in Stamford, Conn. Commodity prices usually move in tandem with U.S. production, income and the stock market, so the increase is a reason to be bullish, not bearish, about the outlook, he said.
“High commodity prices are the result of rising demand, not the cause of future economic weakness,” (BULLSHIT!!!) Darda said.
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rising commodities prices are due only to the fact of a weaker inflated dollar!!nothing more ,nothing less period!
U.S. investors should welcome, not fear, climbing commodity prices.
The increases are “largely a reflection of the fact that the pace of economic growth, ( what growth???? )particularly in the U.S., has picked up,” saidNariman Behravesh, chief economist at consultants IHS in Lexington, Massachusetts, and a former Federal Reserve official who has been covering the global economy for more than 35 years. “It’s not something to be worried about.” ( for who????)
The Standard & Poor’s GSCI Spot Index of 24 commodities has climbed 24 percent during the past year to its highest level since September 2008 as prices of raw materials from oil and copper to wheat and cotton have increased. That has prompted investor concerns that that rising energy and other costs might derail the U.S. recovery by robbing consumers of purchasing power and pinching corporate profit margins.
History suggests they’re wrong to be concerned, said Michael Darda, chief economist for MKM Partners in Stamford, Conn. Commodity prices usually move in tandem with U.S. production, income and the stock market, so the increase is a reason to be bullish, not bearish, about the outlook, he said.
“High commodity prices are the result of rising demand, not the cause of future economic weakness,” (BULLSHIT!!!) Darda said.
=================================================================
rising commodities prices are due only to the fact of a weaker inflated dollar!!nothing more ,nothing less period!
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