When I see commentary like this... article... (from Cramer) justifying a new normal I get annoyed. This is not a new normal. Its called stagflation or manipulation. (close your eyes and pick which one you want to call it because whatever you want to call it, it will have the same effect on the economy)
Whenever prices go up its because of too many dollars chasing too few goods.
Copper production increase are not taking place, as per the largest copper miner in the world FCX's CEO, because China is the only one truly buying. So basically only one country caused the rise of copper to go up 61% since March.
That to me is bullshit.
CEO's can claim low demand, not increase production, while dollars are obviously chasing their goods (ie demand is present), causing the commodity to rise.
Then when the global economy picks up, the story will be... production can not meet demand, hence, too many dollar are still chasing too few goods. Prices keep rising.
So... are we in stagflation or just manipulation? Doesn't matter, the effects of higher input costs will be felt regardless, and ultimately be passed onto the consumer.