When we step back and look at the capital flow, liquidity and growth conditions in the world, the implications for the recent run-up in stocks like BHP, RIO and WPL become clear: Lower prices are likely ahead. In measuring global liquidity conditions, we are careful to measure both the ‘quantity’ of liquidity as well as its rate of circulation in the world (otherwise known as ‘velocity’). In this wire we review the key drivers that enable us to form a useful perspective not just around the Australian Resources sector, but also the broader prospects for commodities and Emerging Markets in general.