How the recession is good for commodities

The state of the global economy should ensure commodity prices remain depressed. But measures by the world's governments to combat the slump could lead to new highs.

You can call Ben Bernanke an idiot, a policy wonk, or just another government stooge... but the new uptrend in the commodities complex loves the guy.

Commodities are direct beneficiaries of inflation. Two weeks ago, Bernanke announced a plan to inflate the US money supply by over a trillion dollars. Commodities celebrated. Oil and copper both broke out to new four-month highs. The Swiss, British, and Japanese governments are also pursuing inflationary policies. As the world's most important money issuers destroy their currencies, commodities could explode.

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