Prices soar on inflation worries

[Sub Atomic]

Source: Union Tribune Staff Writer

Speculators pump up oil, food, raw materials

By Dean Calbreath
UNION-TRIBUNE STAFF WRITER

March 4, 2008

Wall Street investors and speculators drove the price of food, oil, precious minerals and raw materials into record territory yesterday, signaling higher prices for consumers and businesses in the near future.

Already, consumers are paying close to all-time highs for gasoline, but those prices will likely go up even more with crude oil reaching the record-setting level of nearly $104 per barrel before closing at $102.45.

In volatile trading yesterday, gold futures soared toward $1,000 per ounce. Platinum hit a record of $2,247 per ounce. Construction materials such as copper, tin and aluminum climbed sharply, as did food commodities such as wheat, corn and coffee.

“This is not just gold or oil or silver,” said James Hamilton, an economist at the University of California San Diego. “Virtually every commodity has gone up quite a bit in price. Although the consumer has already been feeling some of the effects of rising prices, it will take some time for many of these prices to hit the consumers' budgets.”



Read more: http://www.signonsandiego.com/news/business/20080304-9999-1n4gold.html

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The part that speculators are now driving the price of food higher burns my a55 like you can't believe.

They should all be taken out and shot.

[angstlessk]

1. I thought speculation was just that..speculation..NOT PREDICTION???

when was the last time someone lost money when speculating on higher prices???

[Indy Lurker]

3. All the time

Look at the Chart for Aluminum.

Anyone who bought Aluminum last April, and had to sell it before February lost money.

[DJ13]

2. The Feds need to investigate the commodities markets for fraud

Just announcing an investigation into questionable trades would put the brakes on the speculator driven increases.

If theres one thing rats hate, its turning a light on to their activity.

[khaos]

4. the dollar is crashing..

this is inevitable; going to get ugly.

[brentspeak]

9. I second that.

[bluestateguy]

5. People my age have no living memory of inflation

It really hasn't been a problem in America for over 25 years.

[Anarcho-Socialist]

6. Stagflation

Growth goes down, as inflation and unemployment goes up.

[cliss]

7. Hard to believe.

I've read that commodity prices are going to quintuple. That's....quintuple. Meaning, if a gallon of milk now costs $3.00, it will soon be $15.00 / gallon.
If you spend $100 on groceries, it will soon be $500.

At that point, A LOT of people are going on a crash diet. Because we won't be able to afford groceries.

[Heywood J]

11. Eat the rich.

The economy would collapse before that happens, if for the sole reason that people wouldn't be able to afford food long before that quintuple point comes.

It'd be like Germany in the 1920s, people would be insisting on being paid in other currencies.

[lonestarnot]

8. Wheat?

[Xenotime]

10. You can forget about driving anywhere this summer.

Fuel will be too expensive unless you are some fat CEO