The price of rice finally started to moderate this week, with rice futures sinking for a fifth straight day. Rice has retreated 11.6% on the Chicago Board of Trade since hitting an all-time high last Thursday.
Those unfamiliar with marketplace dynamics may not recognize how government activity has created price distortions across our economy. But when these “artificial” chains fail to restrain the market, the underlying forces become easier to see.
How does the prospect of $4 a gallon gasoline sound to you? Undoubtedly, it doesn’t sound all that great. But what if I said that gasoline prices were headed for the $4 a gallon level, but once they got there, they’d head no higher?
