The idea is almost too simple to embrace.
When developing economies need to build their infrastructure to developed world standards, they need a lot of basic materials, or commodities. If those developing economies are small, such needs will not move commodity prices. But as developing economies reach critical mass—as have the economies of China and India—they will exercise greater and greater influence on those prices. Commodity markets today bear the weight of the rapidly expanding Chinese economy, and an increasing number of developing economies will join this competition for resources in coming years.
The simplicity ends here.
The current commodity cycle offers no license to print money, despite bullish long-term ...