Commodity prices are going haywire, prompting fears of the next financial crisis

MaketWatch/Chris Matthews/4-19-2022

cartoon of lemming going over a cliff, one has a gold parachute

“This volatility has not only helped fuel levels of inflation not seen in 40 years —market observers are warning that it could put the stability of the global economy at risk unless regulators and central banks wake up to the threats posed.”

USAGOLD note: There are so many fires lit in the financial markets these days, that it will be difficult for the Fed to determine which one it should put out first. Some are worried about a speculative crisis suddenly enveloping the commodities space. “… [I]nstead of enacting position limits that work, which would bring prices more in line with supply and demand,” warns one analyst, “we have large banks advising clients to shift more of their portfolios into commodities as a so-called inflation hedge.”

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