Loading ...Allocation, the action or process of allocating or distributing THINGS of need or value.
Unfortunately, between artificial manipulation of the Dollars value, combined with manipulation of futures prices, 90% of which are phantom contracts, combined with algorithms, fake news etc, the values and pricing system has been DISTORTED.
If or when the price DISTORTION of the US Dollar or a commodity that gets too far out of whack, the trend reverses. The prices, if get too high cause less use and more production. If the price gets too LOW? it causes more use or waste and LESS production. For example, odds are the low 72 Dollar caused $145 Oil, with added production, and the $145 Oil caused a glut, leading to $28 a bbl. later on.
Supply and demand takes effect ONLY after the distorted price gets too far out of reality. Eh? 🙂
Dollar Chart note 72 in 2008, also notice the manual adjustment higher in June ’14.
https://www.mrci.com/pdf/dx.pdf
Oil chart, note the distorted $145 high in 2008, and the $28 soon after.
https://www.mrci.com/pdf/cl.pdf
Commodities always trying to fine their “sea legs” 🙂