(an interoffice email)

>
>   On Wed, Apr 9, 2008 at 4:05 PM, Pat wrote:
>
>   What about the continued allocation increases from non-end
>   users of commodities? From what I’ve read allocations by
>   pensions have gone higher even with the rising prices as well
>   as a whole host of new entrants (ETFs, HF’s, etc…) Are these
>   compounding the problem or are they the root of the
>   commodity price inflation?
>
>

passive commodities are part of the landscape for sure:

1. put upward pressure on competitive commodity spot prices
2. put downward pressure on the $
3. add to gdp
4. in general, help ‘monetize’ saudi crude price hikes
5. put upward pressure on crude futures
6. serves no public purpose