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Record Drop in Commodity Prices

Page history last edited by PBworks 12 years ago

THE GREAT COMMODITY COLLAPSE

Powershares Wilderhill Clean Energy Portfolio

For the rest of their lives, investors will talk of the great collapse shown by our chart of the week. It's the past three years in the "CRB."

You can think of the CRB as the "Dow Industrials of commodities." It's one of the most widely used gauges of raw materials like oil, corn, copper, and natural gas. The index is down an astounding 51% since its July peak... and near its lowest levels since 2003. It's one of the greatest commodity declines in the history of mankind.

Common sense tells us the huge amount of money the government is creating out of thin air will eventually cause high inflation. But for now, falling prices – or "deflation" – is the order of the day. Let's all go celebrate with

cheap food and cheap gasoline.

– Brian Hunt

 

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