Also the rise of commodity ETF's over the past 20 years resulted in a massive influx of money from long-only funds hedging with commodities indexes...which in turn take that money and buy a basket of the underlying commodities... artificially propping up the price of things like OIL.
That's why we don't calculate inflation that way anymore. That and the fact that Oil can fall 25% in six weeks, making it a bad measure of the real economy and a good measure of risk-on/off sentiment. I agree with most of what gold bugs (Zerohege, Rick Santelli... etc.) have to say, except on the monetary point. We live in a fiat world, and it's here to stay.
Why attach the growth of business to the quantity and value of a shiny metal/rock? That is about the stupidest, most out dated thing someone could say. What's next, the world is still flat?
Rocks don't earn a return, man. Back to the drawing board..
That's why we don't calculate inflation that way anymore. That and the fact that Oil can fall 25% in six weeks, making it a bad measure of the real economy and a good measure of risk-on/off sentiment. I agree with most of what gold bugs (Zerohege, Rick Santelli... etc.) have to say, except on the monetary point. We live in a fiat world, and it's here to stay.
Why attach the growth of business to the quantity and value of a shiny metal/rock? That is about the stupidest, most out dated thing someone could say. What's next, the world is still flat?
Rocks don't earn a return, man. Back to the drawing board..