Ten years ago, it would be hard to imagine a more stable investment than timber, or those Real Estate Investment Trusts (REITs) that bought millions of acres of harvestable trees.

America is witnessing a mammoth increase in the money supply.  According to the U.S. Federal Reserve, seasonally adjusted M2 has gone from $7.25 trillion in July of 2007 – to over $8.37 trillion today.  That’s 15.44% more money circulating around the economy in just two years, a colossal $1.12 trillion increase.

For quite some time I was interested in recommending that my readers invest in Russia. I still had concerns about some political issues and organized crime in the country.  Most experts out there tell people to stay away from Russia, so I knew I had to do further research myself.

Why invest in commodities? Two and a half billion people are going to live like Americans in the next 20 years and prices go up over time, that’s the nature of inflation.

This is the third installment of a new Money Morning series highlighting investment opportunities created by the global bull market in commodities. There’s a classic squeeze going on in the timber markets right now.