Next Monster Bubble Identified by Jack Lifton
September 08, 2010
– Comments (6)
In his opinion the next big bubble "Commodities Inflation" an inflation of the likes the world has never seen. I can see it building already but its at the very earliest stages at this point. In my Opinion it will take another 5 years minimum and maybe 10 before we get to a bubble situation in commodities. There will be lots of folks that get rich quick on this next bubble of the future and alot of folks "retail that enter between 2015-2020 will also lose big once it gets too high and the demand craters".
Jack Lifton said today in Asia:
"If China’s growth rate were to continue at 8%, then its demand for all metals, current at 53-56% of all metals produced in the world, could shortly rise to a level where the existing productive capacity of the world’s metals economy cannot increase any further, due to capital, equipment and skilled personnel limitations of availability. When this point is reached, the first result will be an intense commodity price inflation the likes of which the world has never seen. This would of course in the long run be demand-destructive, and prices would ultimately crash in a world-commodities, price-led recession, but the economic and political danger of such a series of events is sobering and a little frightening,
China recognizes this possibility much better than Western economies do, still mired in recession due to the credit bubble. China fears most of all a commodity price inflation, and a renminbi appreciation, either or both of which could damage its economy or slow or even stop its growth."
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