Commodities?

[manny31]

I was having a conversation with a guy and we were lamenting the distortions in the economy due to the ridiculous amount of liquidity in the system. I said I have all but given up on trying to make sense of things. He mentions the one thing that makes sense is the price of commodities, especially hard commodities used in manufacturing, difficult to manipulate, WTI, Iron Ore, Copper etc..... Admittedly I think we are in for a world of hurt here soon but wanted to throw that out there. These commodities are really reflective of what is really going on as opposed to what is being driven by ridiculous amounts of Fed, ECB,PBOC et. all QE. Yea or Nae these commodities imply a recession is a coming?

[Tugg Speedman]

They always have in the past

[jficke13]

It certainly seems as though the commodity pain suggests there is deflationary pressure in manufacturing side of the economy. Not sure if the U.S. economy has evolved to the point that it just isn't as impactful as it once was though. My guess is it will be more very slow growth and trouble for international manufacturers.