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Investors are growing concerned that the government's huge spending projects could lead to a round of inflation once the economy begins to recover, driving commodity prices higher and pulling Treasury prices even lower.
But the idea that speculators are driving commodity prices beyond their "true" level seems particularly galling.To many, that oil went from $65 a barrel in June 2007 to $145 in July 2008, and back down to $31 in December of the same year, is proof the price was not being set by supply and demand.
The worldwide economic recovery has been driving commodity prices higher as the resumption of growth requires resources.
At the same time, Africa was experiencing unprecedented economic growth, fueled by a robust global economy driving commodity prices up.
Mr. Scott said he had interviewed suburban housewives, hard-driving commodities traders and "weekend warriors," who shoot up and get a thrill from hanging out at the Brickyard.
"But the things driving the commodity market are not necessarily the same things driving high-quality coffee farming.
AN ENERGY analyst discusses what is driving the commodity's high price and why Big Oil hasn't been faring well.
Congress is debating measures that would tackle speculators, whom many in Washington blame for driving up commodity prices.
For a while during the recession, emerging market strength had some negative effects; by driving up commodity prices, they squeezed consumer wallets in the developed world.
Jeff Frankel has been arguing for some time, most recently in a new blog post, that low real interest rates are driving up commodity prices.
Those problems are compounded by the fact that what's driving the commodity price up and down may have nothing to do with the coffee market itself.
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