There Will Be Bubbles

My rant on Gonzalo Lira's hyperinflation prediction has prompted me to make a clearer prediction for the future. I think that the Lira's of the world will speculate into commodities, driving prices up. Producers will be squeezed, their production costs will rise, but no one will buy their products if they raise prices. They won't hire, certainly won't be giving any raises, probably even let some more people go. As unemployment stays flat or even rises, stockpiles of commodities will accumulate until prices fall again back to normal levels. This scenario will play out several times over the next few years. The only very dangerous bubbles are debt fueled. We are already over-indebted, and this debt has to work its way out before a new debt fueled bubble can occur.