| What has recently happened to commodity prices is a key indicator of the strains in the world economy, and perhaps a forecaster of the dangers that lie ahead. Equity markets have been generally weak, while Swiss commodity giant Glencore has seen its share price drop by two thirds. What are we to make of the commodity price meltdown?
Throughout our industrial history, concern about commodities has usually focused on anxiety about shortages and high prices. In the 19th century, the great British economist William Jevons forecast industrial growth would grind to a halt because of a shortage of coal. In the early 1970s, the Club of Rome forecast a serious shortage of all essential commodities would cause their prices to surge, thereby inhibiting, perhaps even stopping, economic growth...............................................Full Article: Source
|