Quote:
Originally Posted by Otto
About half the price of oil today is the result of such contrived speculation, as opposed to supply vs. demand. Similar story with corn, wheat, etc., which explains food riots in Cairo, and kids eating mudpies in Haiti.
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It's called inflation. Commodities seem more expensive because the dollar has significantly devalued. It's the price to pay to avoid economic catastrophe following dishonest lending.
Speculation is going on, but I wouldn't claim it to be the driving factor.
- LostCause