Everything is getting cheaper

segunda-feira, setembro 29, 2014 David Barradas 0 Comments


the division of the world into so-called developed and developing nations implies that the "developed" world has already achieved the achievable, and that poor nations just need to catch up.

Peter Thiel, Zero to One


I don't know how the Bloomberg Commodity index is build and I don't intend to investigate. But I  can see that we are at the minimum in 5 years. Why are commodity prices moving sideways/down? Because i don't see the need to build new things, there is plenty of excess capacity in the world. What is the problem? lack of Demand.

How do we solve this problem?

1.Destroy the excess capacity? Only with  a war or a big recession



And of course if you are a producer of Commodities, Emerging markets countries this is not a very good position to be. I see the EM currencies going down big time.

To sell commodities & to buy I-phones is not a good position to be in. You need lot's of trucks of Commodities to buy 1 I-Phone! With this trend you will need more & more trucks.......











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