And you probably thought the oil bubble in 2008 was a big deal? Well, the CRB Spot Index of 23 markets (which EXCLUDES oil) now dwarfs the 2008 move. This bubble is not only larger, but it is substantially broader in terms of the markets included. Few markets have been excluded from this price surge:
This is such an extreme disequilibrium that I think the Fed has to now very seriously consider that they have contributed to this rise in commodity prices. Several independent sources have come out to counter the propaganda out of the various Fed banks claiming no involvement in the commodity price increases. It would be nice if the Federal Reserve stopped playing doctor on the US economy and actually tried to objectively quantify the impact their actions have had. To anyone with a working set of eyes it is fairly clear that the Bernanke Put is working its magic in most destructive ways.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.