Tuesday, January 4, 2011

Commodity Prices Will Continue to Rise. Can World Economies Continue to Support That?

The upswing in resource prices continues. From a fundamental perspective this is no surprise. As the US, Japan, and Europe pursue an unremittingly loose monetary policy, credit supply to the “real” economy is more or less stagnant. Therefore a lot of capital is available for speculation.

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About the author:
Maarten Spek is a financial markets analyst at ECR Research specializing in interest-rate and currency developments within the G10 economies.