Loading ...What happens when the softs start rising again?
Wheat, as an example, is down about 60%(!) (corn as another, down about the same) from its high in 2022 and is at multiyear lows at present. Despite this, CPI has remained positive the entire time.
When softs like wheat start rising again, it’s going to put Americans in a world of hurt. The softs impact non-discretionary spending (e.g., on things like food) compared to hard commodities like copper, which makes it especially painful for the poor and common folk.
Sir Nautilus,
I follow another ex-Tenter (on X/Twitter), who was not liked by many here and I was cautioned against following him because of his “personality”.
(Now I might be young (49) but I’m not that naive as to not be able to distinguish the quality and correctness of content and foresight, versus, the “I told you so” personality, which is unfortunately prevalent, more often than not.)
In short …
According to him, the next wave, wave C if you will, of inflation in the USA, is what will bring this country down to its knees.
Now, if the Fed were to cut rates, it’d (next wave of inflation) be blamed on the Fed. But, we all know that commodities go parabolic, correct hard (sometimes retracing as much as the 0.786 Fibonacci level from the prior breakout point), and then go parabolic again.
We’ll soon see.
GL