What's behind the recent run up in commodity prices? Demand, you say? Not so fast. The likely culprit is hedge funds. I suspect that Ambrose-Pritchard's analysis is correct. I think this penetrating paragraph is the most fascinating, not to mention likely correct.
It [the commodity price run up] is a anti-inflation play by funds betting that quantitative easing by the world’s central banks will lead to systemic currency debasement. That may ultimately happen, but the more immediate threat is the abrupt slowdown/contraction of the broad money supply (M3, adjusted M4) and the collapse in the velocity of money, as well a post-War low in capacity use (68pc in the US), and a massive global “output gap”.
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