The media (in my country) keeps blabbering about a supposed bubble in the commodity market.
The prices of metals, oil, food etc are going up.
One day it was the evil speculators, today it’s the government’s stimuli that’s causing it.
I’d like to know the opinions of fellow Austrians. I’m not an economist but to me it seems that this is because people have lost faith in paper money so they try to put as much of their wealth as possible into things whose value doesn’t depend on the government’s good will.
And the conditions causing the commodities to rise (not a bubble - yet) will only get worse - so it probably will eventually become a bubble.
And many politicians and in the media will try to lay blame on the “evil speculators” and deflect blame from the true culprit - the debasing on the various fiat currencies via the money printing.
Government is not sustainable. That is why it is everso changeable. None have existed in permanence. Its bad stock, long term, to invest in anything government does.
The commodity market is a bubble on paper because prices are increasing due to inflation of the currency. However I wouldn’t call the commodity market a bubble, because it insinuates that a lot of malinvestment has gone into the part of the economy, but it hasn’t. The real bubble is from government and the currency, high commodity prices is simply a product of that bubble.