London, June 2011

Fundamental Pricing of Commodities: However firmly we hold to the view that the hypertrophic, state-coddled, fractionally-based financial markets in which we must operate are not exactly the embodiment of dispassionate rationalism in their workings, it is nonetheless true that – over time – commodity prices can be shown to trace out a path not wholly divorced from that followed by the real-world processes which utilise them.

This is especially true of industrial production and the internationally dispersed network of outputs best reflected by global trade flows.

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