Can the U.S. financial crisis be contained within America's borders? Nouriel Roubini says no--and explains how the contagion will spread
Nouriel Roubini, Foreign Policy Published: Tuesday, March 04, 2008
COMMODITY PRICES WILL FALL
"One need only look at the skyrocketing price of oil to see that worldwide demand for commodities has surged in recent years. But those high prices won't last for long. That's because a slowdown of the U.S. and Chinese economies -- the two locomotives of global growth -- will cause a sharp drop in the demand for commodities such as oil, energy, food and minerals. The ensuing fall in the prices of those commodities will hurt the exports and growth rate of commodity exporters in Asia, Latin America and Africa. Take Chile, for example, the world's biggest producer of copper, which is widely used for computer chips and electrical wiring. As demand from the United States and China falls, the price of copper, and therefore Chile's exports of it, will also start to slide." More Here:
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