Show Me the (Commodity) Bubble! Part II

Puplava slays a commodities-market bubble-ista:

In addition to historical comparisons, another way to measure what inning the commodity bull market might be in is by a relative comparison between hard assets and paper assets, again using relative numbers, not absolute numbers. Comparing the CRB Index relative to the 30 year government bond price shows the relative extreme the two reached at the height of the last commodity bubble in 1980. The ratio between the two reached a peak near 6.5 in 1980 and a low of 1.69 in 2001. With the current ratio at roughly 3.5, the CRB Index (commodities) would have to nearly double while bonds remained flat to reach its former relative high as we are still in a secular inflationary period.

These people are in ample supply, probably fueled by specious commentary from the likes of CNBC. Apparently since the word "bubble" was recently added to their vocabulary, and perhaps because they've lost so much money in the very real housing, stock, and structured finance bubbles, they believe commodities must also be in a bubble.

Unfortunately there is just no hard evidence for that theory. Sure, prices have gone up, but they are still tame by historical standards, and by true commodity bubble standards (wheat for example is something like 1/3rd of the way to its real 1974 peak; gold 1/2 to 1/3rd of its 1980 peak). The real problem with commodity prices today is that consumers are much more vulnerable to them.