Not ecomonist, but new era of Economy can not be justify by old school economy thoughts imo.
The dynamic of economy itself is so diff just compare to 20 yrs ago not to mentioned 50-100 yrs chart.
There is no peak price in commodities but higher and higher price. If china boom is once in a century boom then i reckon we may have another century of boom to go.
Fundamental tells us supply and demand then new equilibrium (price) will set in. New era "free market" + dynamic leverage of deriative has created illusion of scarcity and thus higher "equalibrium".
Old school says market supply to meet demand. New school says create demand so that you can control supply.
We can;t change the dynamic of the system as it evolved, but we sure can capitalised on it.
inflation/deflation is just an economic environment reflecting some greed and fear. Regardless, life goen on.
i think tht's why we say history will keep repeating itself cause we've never learned it in the first place.
