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Old 09-15-2008, 07:53 PM
 
Location: Chino, CA
1,458 posts, read 3,062,548 times
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There was a fortune article I read recently comparing the price increases in commodities vs. the relative price increases of intellectual products.

It was interesting to see the relative price changes of commodities vs. intellectual human made products.

"The true commodities on the list, steel and gold, have risen hugely, about 170% each. But almost none of the more intellectually endowed products are up nearly that much..... Most surprisingly, a Mercedes-Benz E-Class four-door sedan, combining technology and brand strength, was $78,445 eight years ago; the current model, fully loaded, is about $75,000, and its base price is just $61,900." - a drop of 21%!

If the case of the commodities enthusiasts remain unbalanced... we might as well not even sell microchips, cars, manufactured goods, etc. since sooner or later the price of raw steel would be worth more than intelligently produced goods.

Of course this won't happen. So either the price of manufactured goods would have to go up... or the price of commodities will have to go down. I have a feeling that commodity prices will have to go down since most people are already complaining about absorbent costs for goods (they just won't buy them).

Fortune Article:
http://money.cnn.com/2008/09/04/maga...tune/index.htm

-chuck22b
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