I believe commodity prices are rising so that investors can divest themselves of USD, not get more of the rubbish. eg Chinese.
USD is being printed like there is no tomorrow, and thats just at the Federal level.
Investors are shedding municipal bonds in the US so that states are cutting costs in essential services. No one wants USD, its only because they are forced to use them as trade currency.
Commodity 'bubble' is also a result of USD printing, devaluing the currency and rising the prices of commodities.
CPI in the US has fallen because commodities were taken out of the measure for CPI. Nice.
Assets of the rich are inflating while purchasing power of the poor is deflating.
Bernanke wants rates kept low, but the market is pushing them up despite what 'The Bernank' wants.
Interest rates are the key I guess. Oh, and more divulgence of bank losses as time goes by.
They'll play the game for a while, but countries are waking up to the 'flight to safety' USD scam.
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