Lately there’s been some negative chatter about China. Let me assure you that I have not changed my views on China in the brief period since my most recent book, Red Alert: How China’s growing prosperity threatens the American way of life, has come out.
Much of the China chatter has centered on weakness in commodities, to which I can only say “oh really?”
Looking at just a few commodities – copper, gold, silver, oil and corn – reveals that they will likely finish 2011 with average annual prices at all-time highs. While it’s true that many other commodities have not hit all-time highs, it is also the case that the amount of money the U.S. consumer has had to shell out for gasoline was on average higher in 2011 than in any other year. Ditto for uses of copper, silver, corn and many other commodities.