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43

hyper inflation hyper inflation COMMODITY PRICES SOAR, RATE OF INCREASE OF THE SUPER-INFLATION INCREASES, DEFINING HYPERINFLATIONARY BLOWOUT. September 2005 "Hyperinflationary Patterns" emphasizing its Riemannian shock-wave model, is unfolding fully in the commodities field. Fools are pouring in money on each twitch of the market. "There is a wall of investment money moving into commodities markets," said UBS analyst John Reade April 12. "We estimate around $100 billion was invested via the Goldman Sachs index, the Dow Jones/AIG index and products tracking those [commodities] indices at the end of 2005." The cited investment funds are invested into so-called "passive indices"; they mimic the performance of commodity prices. However, there are hundreds of billions of dollars more that are invested in "active funds" that are "actively" invested, which if taking long positions, forcefully push up commodity prices. The size of all investment in commodities could be one-quarter trillion dollars or more; moreover, this is coupled with sizeable leverage. The commodities prices' defining characteristic is an increase in the rate of increase. For example, between March 31, 2003 and Dec. 30, 2005 (the last day of trading), the price of palladium rose from $170 to $257 per ounce. For that whole 33 month period, its rate of price increase was 51.1% rate; its average rate of increase came out to a hefty 18.6% per year during that span. However, since the start of the year, palladium's price has subsequently jumped from $257 to $348 per ounce by April 12, which were it to continue, would come out to an increase 132% for the year 2006. Between March 31, 2003 and Dec. 30, 2005, a metric ton of aluminium increased in price at a rate of 13% per year; for 2006, its annual rate of increase is 72%. For a metric ton of zinc, between March 31, 2005 and Dec. 30, 2005, its price increased at a considerable—inflationary—rate of 55% per year; for the year 2006, its annual rate of increase is 220%.

15/04/2006