More Price Rises: Commodities
In the last few installments, you saw how globalisation led to urbanisation that led to pressures on limited supply of resources that led to price increases of essentials like food and oil. When more people became aware that globalisation is happening faster than the world can manage, and that perhaps development was not that sustainable, items which have been neglected in this rush for urbanisation (namely agriculture products) suddenly became valuable. Investors, speculators and the monied class began piling their "investments" into commodities resulting in commodities prices going "through the roof". The prices of commodities have come off lower since the onset of the recession. But don't be mistaken, lower is not low.
In the last few installments, you saw how globalisation led to urbanisation that led to pressures on limited supply of resources that led to price increases of essentials like food and oil. When more people became aware that globalisation is happening faster than the world can manage, and that perhaps development was not that sustainable, items which have been neglected in this rush for urbanisation (namely agriculture products) suddenly became valuable. Investors, speculators and the monied class began piling their "investments" into commodities resulting in commodities prices going "through the roof". The prices of commodities have come off lower since the onset of the recession. But don't be mistaken, lower is not low.