Friday, April 13, 2007
The Economist's commodity price index rose above 200 this week. It is upp a full 5.6% on the month and 23.9% in the latest year. And with 100 being the level for the year 2000, this means that commodity prices have more than doubled since that year. All confirming what regular readers of this blog knows I've been saying all along: that the coming recession in America will be a case of stagflation, not some kind of Keynesian "lower aggregate demand pushing down both inflation and growth"-recession.