Tuesday, November 9, 2010

The Gold Hater: Don't Blame Bernanke for Rising Commodity Prices

The Hater tweets:
I agree with @vincefernando. This @boblenzner column http://bit.ly/91jtN1 blaming Bernanke for commodity prices uses totally spurious logic.

Lenzner writes:
QE2 has already damaged the ordinary lives of the middle class and the poor by driving up the price of basic foodstuffs required in the average American’s diet. Sugar is up 5.7%, wheat, 5.8%, oil, up 8%,, soybeans, up 5%– all inside of the first week of QE2.

Oh yeah, Hater, I get your logic: No connection here. Bernanke is about to bomb the country with new money and commodities aren't reacting in anticipation. It's all coincidence.

But contemplate this, the next time you are doing your heavy thinking.

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