Rising commodity prices and a reminder of the 1970s

Compare that with what is happening today. The Russians are coasting on record-high oil and natural gas revenues, and they have just de facto conquered a neighbour. Moscow is flirting with Cuba, Venezuela, Syria and Iran about weapons sales and/or basing rights. Iraq could still be described as smouldering, Afghanistan is most certainly on fire and U.S. forces are over committed and thus ill-equipped to deal with any new blazes should they ignite. The U.S. economy has certainly slowed down - if not outright contracted. Commodity prices, which have strengthened steadily for the past three years, have pushed inflation on the global level up to decade-plus highs.
Stratfor is not saying that the 1970s are returning. There are a thousand things - from the weather in Cuba to thugs in Nigeria to grandstanding in Venezuela to tanks on the Russian steppe to loan policies in Tokyo - that affect the price of tea in China. Prices could rise tomorrow or next week, or they could not.
What we’re saying is that the events of Thursday, Aug. 21, 2008, while dramatic, do not exactly put us into uncharted territory. The day had a familiar feel to it - and “familiar� does not necessarily mean “warm and fuzzy.�
â€" Courtesy: Stratfor.com