by DantesPeak » Mon 16 Jun 2008, 18:55:23
Poster memmel has an interesting concept that commodities, more specifically oil, are money.
This may be an important and correct way of viewing our current monetary situation.
Last year here, I said hyperinflation was possible in the US and many scoffed at the idea. Even now, many say that commodites and especially oil are in a 'bubble'.
That may be a backward way of looking at things. What we have now is a rapid debasement of the dollar's intrinsic worth and inflationary expansion of the money supply at the same time. In these circumstances, things of value - oil - can 'rise' quickly in price. In reality, the 'high' price of oil is our warning a vicious wave of economic deflation is about to begin. But the 'price' of oil could adjust be beginning to go up.
So the worst of all possible worlds, higher prices and falling economies, could be ahead.
It's already over, now it's just a matter of adjusting.