Marc Faber : when emerging economies go up, commodities also go up

Marc Faber :.... In general, when emerging economies go up, commodities also go up because the two are very closely related in the sense that most resources allocated in emerging economies have a very close correlation. Now, when commodity prices go up strongly in a country like India, it benefits some parts of the economy, some segments of the population. For example, if agricultural prices go up, then the rural sector does well. In India, the urbanization rate is just 30%. So if rice prices, sugar prices, cotton price and so forth go up, the rural sector benefits whereby the urban center is frequently squeezed by higher food prices.

So it’s a mixed picture. But in general I would say - if I look at rural areas in Asia , in Indonesia, Malaysia, Thailand, the Philippines and also India - the rural areas are doing very well. So it’s a plus for their economies because by and large the urbanisation rate in the case of India is still relatively low. ...
in economictimes.indiatimes.com