I am sure that most of you saw the headlines plastered around the financial world this week reading:  "The commodities bubble is bursting and the party is over" - Phil Flynn, Alaron Trading.

But for those with a memory, we can recall that the EXACT SAME false claim was made in January 2006 (see CRB Index chart below) when the FED first tried to scare wise investors back into their worthless financial paper.  Therefore, if the so called commodities "bubble" did not burst in 2006 as much proclaimed, can it really be considered a bubble at all?  Of course NOT!  It is simply an accelerating move by investors out of rotting financial paper into hard and tangible assets.  This latest smoke and mirrors show of the past few days will have even less impact than the January 2006 raid because wise investors are becoming increasingly conditioned to the FED's shenanigans and will simply laugh it off at an increased pace.  Do any of you think that the massive CalPERS pension fund did not buy in at these firesale commodity prices?  I doubt it as I am sure the sudden disappearance of physical silver is just a coincidence as well.

Regards - VHF