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$100.01
The March Brent Crude contract has just surpassed $100 for the first time since October 2008. Surely nobody is worried about monetary policy and Middle East contagion. After all, this is just throwing darts at the next disinflationary target.
And just to demonstrate how successful Genocide Ben has been at whatever his agenda is, below we present the ICE gasoline contract, which is only relevant for those who drive, use transportation, buy food, ship stuff or travel. Nobody else will be affected. It also confirms that disinflation reigns supreme.
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awww ya beat me to it!
Don't worry.
Ben S. Bernanke said inflation isn't a problem, and if it ever does become a problem again in the future of the world, he's 100% confident he can act to arrest it within 15 minutes.
Scott Pelley, that shining beacon and exemplary model of invetigative journalism, forced that tidbit out of him during his hard hitting interview of The Bernank.
he CAN arrest it within 15 minutes.
Just stop the QE and jack up the rates and watch the entire banking system collapse in deflationary implosion
looks like we got us a sow here 'stead of a boar
http://www.youtube.com/watch?v=1tqxzWdKKu8
Just stop the QE and jack up the rates and watch the entire banking system collapse in deflationary implosion
Much of the world would enthusiastically welcome deflation, as it has already taken root in their wages but little else (and they care not about McMansions being heavily discounted).
I would enthusiastically welcome a collapse of many of the banks that made idiotic lending decisions, also. That'd be the cherry on top. Let 1/3 of the banks fail, and especially the TBTF ones.
Economic Dawinism would benefit those who were wise enough to not exceed FDIC limits on their deposits in chartered banks, and those with such high balances are in the extreme minority, anyways.
Print on, Hewlett-Ben, Print on!
This would result in the middle class losing all of their savings. I'm all for a strong dose of reality, but it seems to me that hyper-inflation would be more 'fair.' That way everyone (minus the gold bugs) would loose their wealth.
What savings?
It's already long gone. Don't kid yourself.
I meant the perception of savings printed on the monthly 401k statement. Once that is gone it is game over.
Who has access to the freshly printed money during hyperinflation? Why, the elite, of course. Hyperinflation redistributes EVERYTHING to the elite.
Deflation causes everyone with investments (equity, bonds) to take substantial cuts, ie predominantly the elite.
This is true, it is already happening through the PDs isn't it?
I guess I was thinking that I would be able to pay off my underwater house and be debt free, where as in deflation my loss in wages / job would put me on the street. Am I missing something?
What an incredibly stupid statement. Shame on you.
It is a valid statement.
Fair == "I getz some...."
Its all in the eye of the beholder.
FDIC? Are you on fkin crack, man?
You don't seem to understand what deflationary "implosion" means. There would be no freakin banking system, no FDIC, no wages, and none of the rest of this shit
In such an event, wouln't PM's get crushed as well?
paper PM's, yes.
And I welcome it. Get yer forklifts. Ferrari hunting time!
Bingo! And all that easy access to "capital", which should be directed towards infrastructure, energy supplies is not. Why?
Short term, greedy speculators are to blame to a degree. Long term, the issue is more subtle, but simple in its implications. Capital cannot be invested in energy infrastructure that is economically viable, i.e. the risk-reward is not justified from the perspective of an individual investor. Equivalently, the free-market mantra that high prices will lead to investment to produce more of a good that is demanded had been trumped by physics. Welcome to the implications of Peak Oil, neo-classical economics has failed.
Well, how do you think TPTB could justify XOM's lofty price ?
All that money forked out at the pump - and now even more of it ?
When dumb-asses stop racing around in their huge, jacked up trucks and hemi SUV's, I'll believe deflation is dominant. Until that time, it looks to me that there is plenty of disposable money.
I love my suv's, last time I checked I was not a dumbass. Perhaps I am wrong, I will check again. ...... Your right I am a dumbass for driving around in my suv. I bow to a mind far more complex. Thank you for letting me breathe your air.
" Your right " not meaning to be insulting, but, it is "you're right", as in "you are right " common mistake.
you forgot "Dumb Ass!!!"
Like this?
[When dumb-asses stop racing around in their huge, jacked up trucks...]---InconvenientCou...
Dumb asses? Now that's just mean spirited.
(Ford F250 Super Duty 7.3L Diesel, 8inch lift, 37inch a/ts)
Git 'er done!
Ford SVTF-150 Lightning, supercharged 5.4. Requires minimum 91 octane, gets average 12mpg. I'm keeping it.
[Ford SVTF-150 Lightning...]---cbxer55
That'll git 'er done. Nice ride. Guess I won't be waiting for you at the finish line.
To be fair - if you want to see the disinflation then zoom out a bit on the chart.......
SPECULATORS!
LOL, yea flooding the world with trillions in new worthless fiat has nothing to do with it.
In order to save the world economy, we must place a price cap on crude, and initialize more stimulus based Recoveries.
OIL EXPORTERS WILL BE THRILLED!
OH right, price caps are whats needed....frankly I think dunce caps are more in order.
I don't see the big deal when the ink from Bernanke's printing press substitutes for gasoline. It has to be refined first of course, but that creates jobs.
Eventually people will be bustin' caps in asses.
Poe's law applies to economics, too!
EK,
Huh?
You smokin crack also?.PRICES ARE NOT going up?
My ass................look in my wallet.
I laughed a couple of hours ago, on the way to the Bank.
There was a Thom Thumb gas island, with $2.79.9 per gal.
Tommorrow it will be $3.00...........after that who knows?.
Want a Red Ruby Grapefruit?, shell out $1.80 ea.
Want a Red Del Apple?, same damn price.
I cannot think of anything that has gone down as far as foodstuffs in 2 yrs.
even if crude prices are lower a lot of marginally solvent peeps in the northeast are fucked with this relentless cold snap with no end in sight, let alone this relentless ramp in crude.
http://www.space.com/1725-military-weather.html
"weather" - working as intended?
Except those of us who have a wood lot and chain saw.
Well, this is driven by demand. That proves the global economy is back on track, and that it's time to massively invest in stocks.
I've just bought a few more AAPL and NFLX stocks.
Yes, the world is demanding ever more worthless Bernank fiat. Makes earningslook 'strong', and fudged storefront appearances are everything in a nation this shallow and stupid.
LOL! Thanks Harry, you make me laugh regularly!
You've been Hamyfied hehe
Economic recovery (return to growth) requires increased demand in crude. Crude prices will spike, and the recovery will tumble. Wash, rinse, repeat, and with each sequence, lose a couple million jobs, watch a few nations crumble, etc.
Welcome to the oscillation economy. For a glimpse of the future put your head in the washing machine during the agitation cycle.
I refer to it as the saw-tooth economy.
It never ceases to amaze me that the, "More economic activity requires more energy," equation seems to slip past so many supposedly smart people.
Ha! You don't get me that easily Harry...erm, Hamy...erm, Harry...
Wah!
DavidC
Yeh... He's not even trying anymore. Like shooting fish in a barrel. Which, I understand, is suprisingly quite difficult.
...to clean up after the water leaks all over the floor. Only drunks ever tried it.
So much for oil plunging today. Or did I mis-interpret your statement that oil was going to fall today.
Open mouth - insert foot.
"I've just bought a few more AAPL and NFLX stocks"
Harry adds dimension to the word masochist.
Thats a relief.
See! Ben was right! More signs of deflation! Everywhere I look, prices are falling. Oh no, wait a minute......
The one place Bernake really wants inflation is in housing and he's not going to get it. Residential real estate has much more pain ahead and many of those real estate related jobs aren't coming back.
Quite right. Basically, anything you own that is dependent on the credit markets to maintain its price (Housing, vehicles etc) is going to go down in price. Anything you need to live day-to-day is going to go up in price.
The worst of both worlds. Thanks Ben.
Thats right, Bernank is now simply chasing his tail since he's FAILED in his mission of reinflating the housing bubble. Bond and stock pumping is reaching a disastrous precipice very quickly, its all a total fraud and wont benefit anyone.
Yep - Benron's plans have had precisely the opposite effect on every impacted market. Which, of course, meant he was a shoo-in for reappointment.
Screw up, move up, and all that.
The Bernank should hang for this genocide.
And what's the next step, putting Alan Greenspan into the gas chamber???
I can't believe the extremism of libertarians.
Nah, gas chamber is too good for the likes of Greenspan and Bernank.
Hamy you tool, you're not even a real American. Go back to Canadia or wherever you're really from. "Sports Class", lol. Classic. You'll never live that one down.
I'm from Canada, and I have never heard of "sports class". I've asked older people to enquire what Physical Education used to be called in the 60's, and 70's, and they told me it was called Gym class back then. I would think this person is actually from Europe somewhere, and not Canada. There are not only idiots in Canada just so you know, Thanks.
is it any more shocking than the ruthless idiocy of fascists such as yourself?
I unjunk thee, Hamy. Geez some people just don't pay attention, do they. Or, senses of humor are in short supply.
I think its time to start setting small short in stocks. Sell a bit more into close and the sell more at 9:45 if we open up tomorrow. Today's bounce makes sense given relief that Egypt didn't crater over the weekend. Somehow the knowledge that Rome wasn't built in a day doesn't reduce expectation that crashes happen suddenly. They too take time.
Data was mixed.
I think a lot of people are also getting long (and have been getting long) in anticipation of tomorrow's almost certain rally. Its the first day of the month! I think too many people are looking at that trend and starting to short now will make money by end of day Wednesday.
Oh man I hope everyone is piling in long, certain that their best pal Bernank will provide them with a rally. Someday soon, it simply wont happen and theyll all deserve what they get, trading upon expectations of favorable manipulation.
Inflation? No it is just greedy speculators. Money printing has nothing to do with out of control price increases.
Burn all the speculators at the stake. They are practicing witchcraft. We can use one dollar bills to stoke the fire.
witchcraft or God's work? Which is it? I'm confused!
Aww, Tiger's Dubai golf course is no longer being watered.
Where's Erin Burnett when Dubai needs her?
Looks like BDIY might hit 1000 going the other way.
Institutions fear of lossing $$'s is greater than their fear of anything else in this world.....greeeeeeeeeeed
So much for the WTI/Brent spread compression . Back to $10 .
Memo from Timmy Turbo Tax to staff: It's time to update the CPI weighting system... more emphasis on flat screen TVs and terrabyte hard drives.
That isn't even going to work anymore with labor in China getting a 20% raise to deal with inflation .
Right, but the price of Ukrainian hookers is DEFINITELY going down, so there's your angle.
Not true , I married one, fuckin bitch took everything .I will never let my penis make emotional decisions again .
Heh, mine was Czech, I didn't marry her though.
How about some emphasis on KY jelly as well ? Lots will be needed when the turnabout happens..
The higher prices we are experiencing and global stability is a direct result of a strong and robust economy world wide. Unemployment remains lofty but we believe as long as we keep prices as high as possible that this number will come down in line with our mandate.
-Ben Bernanke
P.S.
Someone buy my underwater house.
Real estate only goes up, just like stocks, so just go long everything.
http://www.truththeory.org/zeitgeist-3-moving-forward/
Done. End of Story. Game Over.
Carter described Mubarak as a president who has "become more politically corrupt" and "perpetuated himself in office" over thirty years. He said his "guess is Mubarak will have to leave."
http://www.rawstory.com/rs/2011/01/carter-egypts-revolt-earthshaking-mub...
Isn't that what he said about the Shah of Iran? You can always count on Jimmy the peanut farmer to be looking after the best interests of the USA.
As a follow-up to "Palestine: Peace Not Apartheid", he is about to publish "The Middle East: Sorry, Plurality of Shiite Fundamentalism Wins".
Who cares about women's rights anyway... Majority rules.
Say what you like about the man but he's managed something all subsequent presidents aspired to but failed.
What peace agreements have the others to show for themselves?
Right, because in your black and white world, no Shaw means islamic revolution... I hope the Egyptians install a secular democracy like Iran had before the US interfered and installed their dictator.
You will ignore Brent, it has no relevance.
You will only focus on WTI.
Very good. You are starting to feel much better. Go back to work now.
My girlfriend comes home yesterday and says, " OMG did you see that gas is back to almost $3.50?"
I laughed and said "Wait till you see it next week it may be back to $5.00"
She asked why and all I said was," Ben & Egypt"
People around me (and Harry) think its all nothing but happy endings, unicorn dew and rainbow glitter dust...closing the Seuz alone should be good for about a $5 pop on gasoline overnite. Of course I guess Ben can just print his way out of it and base more of 'the economy' on I apps and hard drives.
You think $8.00 if the Suez is closed? Certainly would be better than expected for the recovery I suppose.
When people ask me why prices are rising, I tell them it's Ben Bernank's price-stability fairies at work.
What inflation?
I would humbly like to offer a song....March Like an Egyptian
http://cretincountry.blogspot.com/2011/01/march-like-egyptian.html
HarryWanger said appl would be higher by 2% today. He is right in that apples are 2% higher today, like they are everyday along with everything else that I buy.
Yep. Said stocks would start on lows and straight up. Seems to be the easy call today. Also, AAPL at 1% and climbing.
If you guys would get your collective head out of the sand and pay attention to how this game works, you'd be making money. Instead you get caught up in stories, that may be important for a day or two but have no long term affect. Pay attention and take what the market gives you.
Rice 3.3%
Wheat 2.5%
Cotton 2.2%
Oats 2.0%
Oil 2.0% (5% friday; thats 7% in two days)
etc
So I own commodities.
You own aapl.
Who is getting a better rate of return? Harry, just pay attention and take what the market gives you. Follow the tape.
If you guys would get your collective head out of the sand and pay attention to how this game works, you'd be making money.
I'm too distracted from shopping for small, non-discretionary, home-decor items 24-7.
You gonna eat your iPad when the SHTF?
No, but I'm sure twitter will be full of: "OMG, the Shit Has Hit the Fan" (posted through Tweetdeck for Ipad)
I believe you also said oil would get "crushed" today, no?
Just one question Hair? Who got taken out on the dip before the PPT and the POMO pump kicked in? Oh that's right, the majority of stock holders who have no contol over the dips. Then the few privledged insiders ride the coattails of Ben and bring the market back. Only problem with this is only a small percentage of traders are making the dough while the majority gets the shaft. It's called stealth robbery Harry and your nothing but a cheerleader for them.
Harry Wanger last night:
"Oil, gold will get killed tomorrow. Equities will start slow and make strong gains as the day progresses"
Let the score board show as of 12:28:
Stocks up less than .5%
Oil - UP solidly
Gold - down $3 and change - HARDLY KILLED
Conclusion - any anal-pore can guess about markets any given day, and like any blind pig, can get lucky on some - but the day isn't over yet for equities
Gutsy call Harry...the Russell 2000 is still looking anemic and just working off oversold conditions...to call the correction over is a bit premature.
"And oil will get crushed tomorrow. Mark this post" Harry Douchebag 1/30/11
http://www.zerohedge.com/article/goldman-what-happens-oil-egypt-contagio...
How's that going for you asswart?
As long as IPhones, I-Pads, I-Mats etc do not increase in price there is no inflation in the (Un)United Kingdom of America.
I live right next to a military base.
Some heavy bombing going on.
Im sure its nothing, probably just testing out those new rainbow glitter bombs.
Funny!
ORI
being dropped by pilots of the wing aptly named "The Flying Unicorns".
Gas around here ($3.45) is already nearing the records from the last melt up in oil (~$4). People are willing to pay these prices, so they should. It will keep going up forever now no reason for Big Oil to hold back.
I don't pay it myself; I ride a bike and use transit.
Well people are 'willing to pay it' I suppose as long as the unemployment and food stamps keep rolling in to about half of americans. Higher prices historically mean nothing as we all know, people have plenty of money.
I sometimes find myself now riding other people's bikes.
Lock cutters in a time of oil inflation are invaluable.
Too heavy. Add this to your B.O.B. at just 4 oz.
http://www.hardwareandtools.com/JH-Williams-Tool-Group-218-6-Inch-Econ-Mini-Hacksaw-u725462.html
Your bike is next Hedgeless!
So is a small mobile sump pump
"Big Oil" does not set the fuckin price of crude
I looked into transit to save on gas. I live about a ten minute drive from work, but if I took the bus it would take me over an hour to get to work and it would cost more than the gas. Plus, I'd be walking about a mile from the nearest bus stop to the job. The caveat in my situation is that it's a suburban area, and suburban transit generally sucks as opposed to dense urban routes. Otherwise I'd gladly take it to save on gas.
I have a bike also, and there are some bike lanes in this area, but you'd have to be feeling suicidal to ride a bike on the roads around here. Three lane suburban streets inhabited by people who think they are on the freeway, yapping on cellphones.. fuck that.. I'd like to live.
I take the lane. No problems.
Of course they don't like it. But they stay in their metal shells all the same. I keep waiting for one of them yeast-boys to get out and have words with me. So far, nothing. I may starve at this rate.
lulz
Hmmm- Exxon profits up 53%. Kinda follows huh! Milestones
If you buy their stock you can get in on the profit taking, it's like getting a discount at the pump.
<< Speculators!>>
<<Print billions of fiat and dilute and blah blah blah>>
<< Demand must be up!! >>
Not a word. Not a single word about suspect production rate, aka supply. This mindset is going to kill a lot of people.
Last year . . . two of the past three years oil has been above $90 (WTI). Guess what, sports fans. It's now three of the last four years. One of them was 2008, and no, there was no explosive demand in 2008.
Demand for gas is about the most flatline non volatile thing around.
Gas as in gasoline. It does vary from flat, though, correlated to GDP.
It is VERY price inelastic. You need enormous price changes to lower demand. People have to spend on gasoline -- clearly even more than they have to pay mortgage payments, or credit card payments, or damn near anything else.
At some point people will understand. The problem is supply, and that's forever. And no, the answer to the problem is NOT to burn less. Burn all you want. Burn it before the Chinese do. It's not going to matter. Conservation won't help so don't do it. The Chinese won't, so neither should you.
There's plenty of oil in the USA, you're just not allowed to drill for it and get it out of the ground. So go ahead and burn all you want until the rest of the world runs out of crude. Then the USA can start their pumps up and sell oil for $1,000 a barrel. Happy days are here again!
man, I been sayin this for years...the lengths people will go to in order to avoid facing the even bigger elephant in the room...
It's as if people believe that because we had a 150 year run of increasing oil supply, it simply MUST be a permanent condition or something. We are ENTITLED to oil at 25/bbl
I seem to remember a sporting event in China sometime in 2008 that had some low-level worldwide coverage, with a corresponding increase in price of oil. But of course, no explosive demand for anything from China in 2008, you must be right. I might have mixed up the years.
No, you are correct. That is a valid suggestion. It's wrong, but absolutely valid.
In the first half of 2008, global oil price rose. China, however, capped the price of refined products inside the country. The result was refineries literally shut down. They were losing money on gasoline because of the price cap. This caused great problems for the Beijing Olympics, which were solved largely with public transport. The result was that in the weeks prior to and during the Olympics, Chinese consumption (demand) was actually down.
Only after the global prices fell, as that oil price spike (and other factors) destroyed demand, did the Chinese release the domestic gasoline price cap and see their usual demand.
Total Chinese oil consumption for 2008 was up 12% from 2007. This was in line with their 8-15% increases registered in the previous 5 years. That rate of increase, of course, slowed in 2009.
So, your suggestion is valid, but not definitive.
I repeat what I said above:
Bingo! And all that easy access to "capital", which should be directed towards infrastructure, energy supplies is not. Why?
Short term, greedy speculators are to blame to a degree. Long term, the issue is more subtle, but simple in its implications. Capital cannot be invested in energy infrastructure that is economically viable, i.e. the risk-reward is not justified from the perspective of an individual investor. Equivalently, the free-market mantra that high prices will lead to investment to produce more of a good that is demanded had been trumped by physics. Welcome to the implications of Peak Oil, neo-classical economics has failed.
yep. Wanna know why it failed? Bc economists know fuckall about physics. They *assumed* (they literally did) that energy inputs would and could grow forever. Seriously.
The entire study of economics occurred within a FISHBOWL. It only has relevance in THIS particular climate. It's a cargo cult. It'd be like studying weather patterns during a pattern of increasing solar activity - EVERYTHING would seem one-way. Without knowledge of the sun's cyclical nature, one might assume temperature would go up forever.
Economics came of age in the fishbowl of sustained growth in energy production. That is like the canvas it's painted on
Yeah... Sorta sad, isn't it? I try not to get angry, just even.
It spells "greedy speculators", "oil price controls", "taxes on financial speculations", not "inflation created by the Fed expansionary monetary policy".
And after all this the banksters are trying to convince the public that Gold is sucks?
Strange things are happening in the last hours (beside Middle East Revolutions and Potential Mega Typhoon in Australia).
Please see:
1) Is Something Serious Up at Treasury?http://www.economicpolicyjournal.com/2011/01/is-something-serious-up-at-treasury.html
2) Clinton convenes mass meeting of U.S. ambassadors
Top envoys from America's 260 embassies, consulates and posts to meet Monday
http://www.msnbc.msn.com/id/41349708/ns/politics-white_house/
I don't know you, but me think something serious is brewing.
Just food for thought, fellas!
Looks like theyre scrambling behind the scenes! Good! Hope theyre all freaking out about something big. Threats of a closed Suez would do it.
Anonymous said...
Sorry, "Source?", is my minimalist way of saying, "I checked the Treasury Press Center and there's no such story, please provide a link to the source which legitimizes the post".
http://www.treasury.gov/press-center/Pages/default.aspx
WLL and SU
:)
WLL BEXP NOG OAS CLR = Bakken Play. Do some homework.
Yep, there are some great plays in the Bakken, made an 8-bagger in KOG...
But from a national or global perspective, the Bakken don't mean shit in terms of increasing supply, but it is better than nothing.
It's not much. I am not quite sure if it's better than nothing. A lot of morons will depend on it and get their kids killed. Nothing . . . if there were nothing there for morons to imagine to be significant . . . their kids might live.
Fair enough, no need to quibble.
YASNY
And the BDI is down to 1107 in our growing economy...
Pay not attention to the things that matter. Just remember, the Fed "is unsinkable" and that in turn indicates, the whole F'ing world "is unsinkable!"
Did it ever occur to you that global shipping capacity increased faster than the underlying trend?
any charts for the coming blizzard?
$100.80 on a nice little green candle. Looks like it might stick. Remember when it was $72.50 way back in August? Glad I am not an airline, or a bulk shipper.
Or car owner.
Now that the world has gone mad, I am actually betting that the uprising in Egypt will take Europe by storm next. This fraudulent activity Ben is committing does indeed have unintended consequences. As they say,