[Marxism] more liberal wisdom on oil

["Rakesh Bhandari" <bhandari@xxxxxxxxxxxx>]

Yet there has been no spike in the rate of growth in China and India; the
rate of growth has been strong for quite some time. So how does the
constant annual rate of growth explain a sudden spike in the price of a
raw material like iron ore (I am assuming that iron ore prices had not
shown a strong rise in the five years previous since Krugman speaks of a
spike last year)? We are also not told how typical iron ore prices are of
raw material prices and whether iron ore inventories are constant or at
least not being reduced (as that may indicate a speculative element), and
whether iron ore prices have increased 5 to 6 times in the last 5 years
(from $26 barrel of oil to $140).
>From a speculative bubble in fiber optics to one in real estate to one in
commodities--this may have structural roots in the economic system the
mainstream economic theory of which is not suited to understand, and the
populist criticism that the problem can be solved with higher margin
requirements or some unenforceable legislation on traders may well be
naive.  So the mainstream opinion goes from denial to naive.



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