Thursday, October 14, 2010
Oil, gold, corn... oh my!
Commodity prices are on the surge as the bet for the Fed to aid the stumbling economy continues. The Fed is expected to purchase assets to pump more money into the economy. "The anticipation of the central bank flooding the economy with more dollars has weakened the U.S. currency and boosted the appeal of commodities as an alternative investment." This is a scary sign that the people is trying to move away from the ever fluctuating paper currency toward something more tangible (which holds stable value): commodity.
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This is interesting as it highlights how people do not mind standardizing the USD against different commodities like oil, gold, and now corn! Although the commodities seem to be the non-fluctuating market, is it plausible to back the dollar by corn?
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