Despite protestations to the contrary, US monetary policy does affect commodities

Mineweb reports that whether Fed Chairman Ben Bernanke admits it or not, commodity prices have been given a significant leg up by U.S. monetary policies.

The editorial is quoted as saying,

The other statement that I found misleading was when Bernanke said that a strong, stable dollar was in the interests of the United States and the world economy. An expansionary monetary policy leads to the debasement of the currency which ultimately leads to inflation. Inflation is the direct outcome of monetary expansion in the absence of economic growth. And, gold and silver will be direct beneficiaries of such policy.

For the complete editorial, click here.