Sorry... I never thought out what I was saying. Cheap credit means an increase in demand, which causes a rise in prices. Due to the world coming down off a mining boom there is an over supply. The real reason I think that commodities havent bounced back is because the bulk of created money is still awaiting maturity in bonds. But I think consumer credit is a good move for the time being. But only until government spending tapers out. Consumers have to spend and do heavy lifting and return money to sustain America's government. Will it help with their balance of trade? The yield on the bonds lags the gdp growth so I would say stranger things have happened. But Koehlers chart keeps me positioned and set to pounce on any bit of bad news. Last quarter US gdp contracted two months and remained the same for one month. Another quarter like that and I will be saying the r-word at least once a day on hotcopper.
