The commodity complex went on a tear yesterday as the US $ lost more ground. BoE droppeed rates 25 bps to 5%- 3% more to drop. ECB held fast at 4%. The debate on commodities continues-on one side the slowing Western economies and on the other side the raging Asian and SA economies. Demand remains firm-though not surging, but supply is stagnant. Problems with nationalization and costs to develop mines have inhibited mine development. Copper testing 4$/lb is a sign that Asia continues to move ahead. In addition, the Middle East is on a building boom-re investing all the petro dollars.
US is in recession-probably a long, extended one as the excess credit boom deflates.
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