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Daily Adventures In 'Limit Up' Zimbabwefication: Cotton Explodes As Asian Mills Panic

Tyler Durden's picture





 

It seems like so long ago that we noted that cotton was up over 17% year to date. Alas it was yesterday. Yet the time-lag effect is not surprising considering that less than 24 hours following our initial report cotton is now up 23% YTD, or a 5% pick up in one day! This was yet another limit up day for one of the world's most popular commodities, which closed at $169.72, a 150 year high. The reason, per Reuters, for the relentless surge in cotton's price is Asian mills: "It's basically mills panicking," said Lou Barbera, a cotton analyst for brokerage VIP Commodities. "Overseas mills are getting the ball rolling." In reality, mills are just one part of what is rapidly becoming a perfect storm for a commodity which will soon destroy margins for all mid-tier retailers: "Powerful cyclone Yasi in Australia also worried the market because it would hit prime cotton-growing areas. Losses there could further crimp supplies in Asian markets, dealers said. Sharon Johnson, senior cotton analyst at brokerage Penson Futures in Atlanta, said it is "possible there's a squeeze" in the U.S. cotton market."

And as if that was not enough, here are the catalysts for the immediate future, which may well continue pounding cotton limit up day after day:

On Thursday, the market will look at the U.S. Agriculture Department's weekly export sales report to gauge demand for U.S. cotton.

The market will then turn its attention to industry group the National Cotton Council of America which will release its annual plantings survey for cotton at its annual meeting in San Antonio, Texas on Friday.

A Reuters survey at the Beltwide Cotton conference this month had forecast U.S. 2011 cotton plantings from 12.48 million to 12.53 million acres, a 5-year high and an increase of around 15 percent from last year's cotton sowings of 11.04 million acres.

No matter what the reason, we wonder how long before the Fed realizes that its CPI indicator is a complete joke when juxtaposed witch charts such as these:

And YTD:

 

 


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Wed, 02/02/2011 - 17:20 | Link to Comment SheepDog-One
SheepDog-One's picture

Cant eat cotton...well unless of course someone perfects the 'chocolate covered cotton' they were trying to peddle in Catch-22.

Wed, 02/02/2011 - 17:34 | Link to Comment william the bastard
william the bastard's picture

 

Egypt is the world's largest exporter of cotton and its textile industry is also large.  That might something to do with today's cotton prices.

Read more: Egypt Overview of economy, Information about Overview of economy in Egypt http://www.nationsencyclopedia.com/economies/Africa/Egypt-OVERVIEW-OF-ECONOMY.html#ixzz1Cq6U41Cn

 

Wed, 02/02/2011 - 17:34 | Link to Comment Joe Davola
Joe Davola's picture

when the government's gettin' overthrown

you can't pick very much cotton

Wed, 02/02/2011 - 17:45 | Link to Comment ColonelCooper
ColonelCooper's picture

Bend Down

Turn Around...

Wed, 02/02/2011 - 18:16 | Link to Comment Pladizow
Pladizow's picture

Self fullfilling prophacy?

Dollars are made from cotton, the more dollars that are printed the higher the price of cotton goes....

Or something like that?

Wed, 02/02/2011 - 20:13 | Link to Comment Malcolm Tucker
Malcolm Tucker's picture

 

You're not going to believe this...and I mean that !

http://fedupmontrealer.blogspot.com/2011/02/itanimulli.html

Implies that Illuminati = NSA ...at least backwards!

 

Wed, 02/02/2011 - 22:10 | Link to Comment Hephasteus
Hephasteus's picture

Shut the fuck up.

Thu, 02/03/2011 - 01:00 | Link to Comment tekhneek
tekhneek's picture

AND I'm not going to read it! OR click it!

Wed, 02/02/2011 - 18:40 | Link to Comment hbjork1
hbjork1's picture

Ah yes:

"I wish I was in the land of cotton,
old times there are not forgotten,
Look away, look away, look away, Dixie land.
In Dixie land where I was born in, early on a frosty mornin',
Look away, look away, look away, Dixie land. "

 

Wed, 02/02/2011 - 21:44 | Link to Comment Joe Davola
Joe Davola's picture

I was thinking more Leadbelly

 

http://www.youtube.com/watch?v=46h56pidCiE

Wed, 02/02/2011 - 18:12 | Link to Comment BurningFuld
BurningFuld's picture

Good thing I just got a new set of sheets for the bed!

Wed, 02/02/2011 - 19:24 | Link to Comment Sudden Debt
Sudden Debt's picture

And I just stocked enough cotton swabs that will last me for a couple of years ;)

 

Some bought Ammo

Some bought Food

I BOUGHT COTTON SWABS!!!

WHO'S THE FOOL NOW BITCHEZ!!!

Wed, 02/02/2011 - 17:28 | Link to Comment Blindweb
Blindweb's picture

Cotton seed oil, one of those cheap fillers they degrade the food supply with.

Wed, 02/02/2011 - 17:32 | Link to Comment Mad Max
Mad Max's picture

cottonseed oil = toxic crap

If it's an ingredient in something, you don't want to eat that thing.

Wed, 02/02/2011 - 17:37 | Link to Comment tmosley
tmosley's picture

Remember it isn't the oil that is toxic.  It's just that they spray a lot of chemicals on the cotton that (supposedly) get into the oil.

You should be able to do some GC to determine whether there really are any pesticides left.

Wed, 02/02/2011 - 17:52 | Link to Comment william the bastard
william the bastard's picture

There's no subject you're not an expert on.

Wed, 02/02/2011 - 18:00 | Link to Comment tmosley
tmosley's picture

It's hard for a layperson not to know anything about cotton in Lubbock.  It's impossible for a chemist.  My group has collaborated with the International Textile Center, and I have long standing friendships with a number of food chemists.

So yeah, I know a lot of stuff.  Unlike you, with your head full of shit.

Wed, 02/02/2011 - 18:07 | Link to Comment Pladizow
Pladizow's picture

tmoseley - "Take it Easy"

http://www.youtube.com/watch?v=ATGv5oaZzqQ

Wed, 02/02/2011 - 18:35 | Link to Comment tmosley
tmosley's picture

Ok.  If anyone needs me, I'll be "Takin' It Easy".

http://www.youtube.com/watch?v=VHxZHp1g0ns

Wed, 02/02/2011 - 18:39 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

If it's easy, take it twice.

Wed, 02/02/2011 - 19:03 | Link to Comment hbjork1
hbjork1's picture

tmosley,

I am so old that I actually picked cotton during the 40's.  Yep, one of those people out in the field pulling a sack.  I liked the job because workers were paid by the pound.  Rates when I was active were $2-$3 dollars/ hundred.  My max was about 250 lbs. per day.  People today will think that was pretty sad but the dimes quarters, halves and dollars were made out of or backed by 90% silver. (We have had inflation.)

Some boys started at around age 12 (There was a war on; child labor was useful.) I gave it up at about age 16.  I could make more money in construction.

Cotton grown for oil extraction is one of the big four genetically modified crops grown around the world, next to soy, corn, and rapeseed (canola), mostly Monsanto products.[1][2]

This from Wikipedia:

"The cottonseed has a similar structure to other oilseeds such as sunflower seed, having an oil bearing kernel surrounded by a hard outer hull; in processing, the oil is extracted from the kernel. Cottonseed oil is used for salad oil, mayonnaise, salad dressing, and similar products because of its flavor stability.[3] The cottonseed oil undergoes intensive treatment after extraction to reduce the level of gossypol found in untreated cottonseed oil, the consumption of which may produce undesirable side-effects.[4]"

Wed, 02/02/2011 - 19:10 | Link to Comment EscapeKey
EscapeKey's picture

Time for a li'l racist field trip.

http://www.youtube.com/watch?v=90XLNQXN_74

Wed, 02/02/2011 - 19:25 | Link to Comment ColonelCooper
ColonelCooper's picture

THAT was fucking hilarious.

Wed, 02/02/2011 - 22:15 | Link to Comment Hephasteus
Hephasteus's picture

ROFLMAO

Wed, 02/02/2011 - 22:42 | Link to Comment SilverRhino
SilverRhino's picture

That was awesome.

Wed, 02/02/2011 - 20:47 | Link to Comment tmosley
tmosley's picture

Modern cotton plants have been modified such that there is no longer any gossypol in the seeds.

Gossypol is sort of interesting.  It is being investigated as a method to increase the effectiveness of chemotherapy on cancer patients.

Thu, 02/03/2011 - 00:09 | Link to Comment Red Neck Repugnicant
Red Neck Repugnicant's picture

You belong on a bar stool next to Norm Peterson. 

First scene:

http://www.youtube.com/watch?v=4okVE1QvBPs&feature=related

 

Wed, 02/02/2011 - 18:00 | Link to Comment ColonelCooper
ColonelCooper's picture

Let's see, a chemist discussing the effect of spraying chemicals on a plant.  Yep.  Seems like a stretch to me.

Wed, 02/02/2011 - 18:07 | Link to Comment The Grip
The Grip's picture

wtf is gc? gas chromatography?

Wed, 02/02/2011 - 18:21 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

yep

Wed, 02/02/2011 - 18:08 | Link to Comment The Grip
The Grip's picture

duplicate post

Wed, 02/02/2011 - 17:29 | Link to Comment RmcAZ
RmcAZ's picture

Cotton candy.

Wed, 02/02/2011 - 19:06 | Link to Comment hbjork1
hbjork1's picture

Cotton candy- Spun melted sugar.

Wed, 02/02/2011 - 17:30 | Link to Comment qp
qp's picture

Carpet beetles eat cotton......

(Bed Bugs & Beyond)

Wed, 02/02/2011 - 17:32 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

Time to hoard the Q-tips!

Wed, 02/02/2011 - 17:22 | Link to Comment d00daa
d00daa's picture

So once again, Hairy Wanker, the question is:

 

What is 17...... er ..... 23% ANNUALIZED???

Wed, 02/02/2011 - 17:29 | Link to Comment HarryWanqer
HarryWanqer's picture

Wealth creation.

Wed, 02/02/2011 - 17:40 | Link to Comment FOC 1183
FOC 1183's picture

Brilliant!  Why didn't Weimar think of that.

Wed, 02/02/2011 - 17:45 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

HarryWanQer? How many of you are there?

Wed, 02/02/2011 - 17:45 | Link to Comment curbyourrisk
curbyourrisk's picture

YOU ARE A JACKWAGON!

Wed, 02/02/2011 - 19:42 | Link to Comment Bill Lumbergh
Bill Lumbergh's picture

Observer:  How would you classify higher taxes?

Harry:  Government wealth creation.

Classic.

Wed, 02/02/2011 - 17:24 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

Does this mean I'm going to be paying more for my shitty socks and underwear from Walmart?

Wed, 02/02/2011 - 17:50 | Link to Comment oogs66
oogs66's picture

Nah, they will just make them smaller and thinner but charge you the same :) it works on food for the sheeple so why not clothes? Maybe they will charge by size - the only real hope Americans would fight obesity.

Wed, 02/02/2011 - 22:03 | Link to Comment LostWages
LostWages's picture

Unless you are prone to shartz, go commando.

Wed, 02/02/2011 - 17:24 | Link to Comment desgust
desgust's picture

And the next bubble is....

Wed, 02/02/2011 - 17:25 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Why is the Bernank not hanging from a lamp post?

What does he have to do, tread on your grannies face in front of your eyes for the docile masses to take action?

Wed, 02/02/2011 - 17:36 | Link to Comment SheepDog-One
SheepDog-One's picture

Makes you seriously ponder WTF does a guy have to do in this country to get swingin from a rope! Demoralized States of Amerika, ah I hardly knew ye.

Wed, 02/02/2011 - 17:44 | Link to Comment AZSovreign
AZSovreign's picture

Another reason the crime continues unabated...

 

http://dailybail.com/home/there-are-no-words-to-describe-the-following-p...

Wed, 02/02/2011 - 17:50 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

Makes you seriously ponder WTF does a guy have to do in this country to get swingin from a rope

A little more, today, for a cotton rope I guess.

Wed, 02/02/2011 - 17:55 | Link to Comment SilverIsKing
SilverIsKing's picture

When you pay people to say nice things about you and the bought and paid for media run with it, the masses believe the bullshit.

http://www.cnbc.com/id/40259912/Bernanke_Has_Done_Fantastic_Job_UBS_Exec

Thu, 02/03/2011 - 09:09 | Link to Comment blindfaith
blindfaith's picture

be in an unpopular or deemed "threatening" group...just ask black Americans, the Irish at the turn of the century, the Chinese and Japanese in California, the gays...and oh yes the latest group of 'hang them high' candidates, the Muslims.

No chance in hell anyone in Government or Finance will ever see a rope unless it is tied to the bow of their yacht.

Wed, 02/02/2011 - 17:26 | Link to Comment Ancona
Ancona's picture

So.....i guess it will cost me a hundred bucks for a nice cotton pair of underwear?

Instead of buying treasuries, Banana Ben should have bought silver, cocoa and cotton.

'Coulda made a killing.

Wed, 02/02/2011 - 17:47 | Link to Comment tickhound
tickhound's picture

I'd imagine that "he" did.

Wed, 02/02/2011 - 17:50 | Link to Comment ColonelCooper
ColonelCooper's picture

Makes you wonder if the banksters aren't.  They have to know that all the money they're getting for free is soon to be worthless.  They know that when the smoke clears, those with tangibles hold the power.  They aren't going to give up the power.

Wed, 02/02/2011 - 17:26 | Link to Comment centerline
centerline's picture

Does this mean that FRN's will soon be worth more because of the paper they are printed on?  LOL.

Wed, 02/02/2011 - 17:27 | Link to Comment tmosley
tmosley's picture

You think that's bad, wait until you see the industrial panic coming in silver...

Wed, 02/02/2011 - 17:30 | Link to Comment Sofa King
Sofa King's picture

That won't be bad...they'll just stop wasting silver on useless coins.

Wed, 02/02/2011 - 17:31 | Link to Comment tmosley
tmosley's picture

Who is this "they" you refer to?  You think there is a central authority that decides who gets what and when?

Here's a hint--that would be even more bullish for silver, as the price for physical will utterly explode on the black market.

Wed, 02/02/2011 - 17:40 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Strange some people see this happening in cotton, corn, rice, etc...and think nothing of it.

Gold and silver go up like that and the trolls scream speculation and BUBBLE.

 

 

Wed, 02/02/2011 - 17:53 | Link to Comment william the bastard
william the bastard's picture

That bothers you.

Wed, 02/02/2011 - 17:58 | Link to Comment Bay of Pigs
Bay of Pigs's picture

No. Only douchebags like you bother me.

Mostly because you're so completely fucking brain dead.

 

Wed, 02/02/2011 - 18:50 | Link to Comment tmosley
tmosley's picture

Scientific experiment gone bad.  They tried to see if you could replace the brain with shit, and still continue to function.  It seems the test subject is only able to troll forums populated by people smarter than him, issue one line attacks, and play with sock puppets.

Edit:  While looking for another video clip, I found this one.  Seems to fit the situation.

http://www.youtube.com/watch?v=hi72SzPgzs0

Wed, 02/02/2011 - 17:28 | Link to Comment Gubbmint Cheese
Gubbmint Cheese's picture

thank god all that money being printed is electronic.. the increase in cotton prices would absolutely KILL the Bernank's profit margins.

 

 

Wed, 02/02/2011 - 17:30 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

Maybe it is the Fed bidding up prices, in anticipation of going into the toilet paper business.

Wed, 02/02/2011 - 17:35 | Link to Comment dwdollar
dwdollar's picture

Or maybe printing all the physical money is causing extra demand for cotton?

Wed, 02/02/2011 - 17:39 | Link to Comment SheepDog-One
SheepDog-One's picture

If they were actually printing a bit of this trillions in fiat over the last couple of years, cotton would be up above gold per ounce!

Wed, 02/02/2011 - 17:52 | Link to Comment Gubbmint Cheese
Gubbmint Cheese's picture

what weighs more? An ounce of cotton or an ounce of gold?

Wed, 02/02/2011 - 23:27 | Link to Comment Matt
Matt's picture

an ounce of gold, which weighs 1/12 of a pound, whereas the ounce of cotton weighs 1/16 of a pound.

Thu, 02/03/2011 - 10:04 | Link to Comment ATTILA THE WIMP
ATTILA THE WIMP's picture

A (troy) ounce of gold (which precious metals are measured in) weighs approximately 31.1 grams

An (avoirdupois) once of cotton (which common commodities are measured in) weighs approximately 28.3 grams

So gold weighs more

I lost a lot of money making trades with Sudden Debt before I became aware of the difference.

Wed, 02/02/2011 - 17:29 | Link to Comment PeterSchump
PeterSchump's picture

There is no inflation.  These are only charts and have no effect on prices at the end of the supply chain.

Thu, 02/03/2011 - 09:14 | Link to Comment blindfaith
blindfaith's picture

Tyler, Tyler where is that sarcasm button we have been waiting for?

This is a joke right?  Sorta like cartoons don't have an effect on kids?

Wed, 02/02/2011 - 17:30 | Link to Comment Wheatman
Wheatman's picture

Tyler I must congratulate you for continually telling the truth in the face of gross Satanic forces, to wit the US Treasury, Congress, and Bernank. These fuckwits are doing their best to destory the Universe, and at least you will have the pleasure of saying "I told you so." But I do highly recommend you book a one way ticket to New Zealand (plenty of fresh water and commodities), with a glock and 30 kg of gold. Because the Western World as we know it is about to implode.

Wed, 02/02/2011 - 17:40 | Link to Comment SheepDog-One
SheepDog-One's picture

I find it amazing that anyone needs to tell the tale of destruction going on at this point.

Wed, 02/02/2011 - 17:31 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

Polyester, bitchez!!  : )

Wed, 02/02/2011 - 17:36 | Link to Comment blobbus
blobbus's picture

The disco revival has been overdue anyway.

 

Stayin' alive...

 

 

Wed, 02/02/2011 - 17:46 | Link to Comment Devout Republican
Devout Republican's picture

Polyester is made from petrochemicals which come from oil and natural gas.

Hemp maybe?

Wed, 02/02/2011 - 17:49 | Link to Comment MiddleMeThis
MiddleMeThis's picture

Absolutely!  Plus, poly doesn't wrinkle.  Long live the leisure suit!

Wed, 02/02/2011 - 17:31 | Link to Comment random shots
random shots's picture

Feels like the Summer of 2008 all over again. Just need someone to call for $200 Oil and then it will all reverse.

Wed, 02/02/2011 - 17:32 | Link to Comment countryboy42
countryboy42's picture

Time to learn how to spin and knit your pets fur.

Wed, 02/02/2011 - 17:35 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

Lay one finger on my pussy, and I'll-

 

Oh, wait.... : )

Wed, 02/02/2011 - 17:37 | Link to Comment countryboy42
countryboy42's picture

If you can knit that...Cousin It? Is that you?

Wed, 02/02/2011 - 17:49 | Link to Comment Logans_Run
Logans_Run's picture

TH, taken in the proper context your handle may indicate that there isn't much material to be had from there. Just observing.

Wed, 02/02/2011 - 17:54 | Link to Comment ColonelCooper
ColonelCooper's picture

"Very short razor stubble can be added to lye soap for use as a non irritating grit for helpin' to get those tough stains." - Foxfire Volume 15

Wed, 02/02/2011 - 17:58 | Link to Comment -Michelle-
-Michelle-'s picture

Angora bunnies should do well.

Wed, 02/02/2011 - 18:02 | Link to Comment ColonelCooper
ColonelCooper's picture

For supper?

Wed, 02/02/2011 - 18:03 | Link to Comment ColonelCooper
ColonelCooper's picture

How's the kiddo doing?

Wed, 02/02/2011 - 21:40 | Link to Comment cbxer55
cbxer55's picture

Beatrix Kiddo?

Fri, 02/04/2011 - 22:28 | Link to Comment -Michelle-
-Michelle-'s picture

The bunnies would be for collecting "wool" for carding.  Eating too, I suppose.

The baby is getting big.  She is a fat little ball of happiness.

Wed, 02/02/2011 - 17:33 | Link to Comment gwar5
gwar5's picture

Shop smarter. Can't eat cotton.... unless it's Fruit of the Loom.

Wed, 02/02/2011 - 17:33 | Link to Comment topcallingtroll
topcallingtroll's picture

Oh shit! Maria Bartiromo just interviewed some people and they are all talking about inflation and power shares agricultural and commodity etfs. I told you the top is neigh. Now we just have to suffer the last minute mo mo guys piling on the inflation trade and wait.....what's that?.... Is that the deflation monster I hear? I sure hope he is all hat and no cattle....all roar and no bite...all talk and no walk. Somebody graph maria and see if she is a valid contrary indicator.

Wed, 02/02/2011 - 17:36 | Link to Comment Bam_Man
Bam_Man's picture

Somebody graph maria and see if she is a valid contrary indicator.

I don't know whether she is a valid contrary indicator or not.

To me, she just looks like Lilly Munster with all that f**king makeup she wears.

Wed, 02/02/2011 - 19:28 | Link to Comment Flakmeister
Flakmeister's picture

Lilly... good one...

But get her name correct: Maria Buttaroma

Wed, 02/02/2011 - 19:29 | Link to Comment Flakmeister
Flakmeister's picture

.

Wed, 02/02/2011 - 19:30 | Link to Comment Flakmeister
Flakmeister's picture

.

Wed, 02/02/2011 - 17:56 | Link to Comment william the bastard
william the bastard's picture

This board is viral with lifer gold bugs and they can't see that the bullsih sentiment in the come and go public is fat with fools.

Wed, 02/02/2011 - 18:11 | Link to Comment topcallingtroll
topcallingtroll's picture

Spoken like a true bastard! Nice to see you back.

Wed, 02/02/2011 - 18:19 | Link to Comment Hugh_Jorgan
Hugh_Jorgan's picture

Untill very soon the "fools" can't afford clothes, or food, or to fill up their car with gas. Are you for real?

Wed, 02/02/2011 - 18:27 | Link to Comment ColonelCooper
ColonelCooper's picture

No, it is because you act like a true bastard that you are met with contempt.  Diverse opinions are tolerated here, just not trolls.  Maybe if you adjusted your smug fucking approach you'd get better results.

Wed, 02/02/2011 - 17:34 | Link to Comment Bam_Man
Bam_Man's picture

Textbook example of a "crack-up boom".

Wed, 02/02/2011 - 17:36 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

Cotton balls!

Wed, 02/02/2011 - 23:29 | Link to Comment Matt
Matt's picture

Cotton Picken!

Wed, 02/02/2011 - 17:36 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

Is the Bernank a closet nationalist ?

Is his mind so sophisticated - his plan - to force Egyptian farmers to convert to food crops to feed themselves , destroying their cotton export industry and rising American cotton producers benefit - the man is a genius.

 

Wed, 02/02/2011 - 17:48 | Link to Comment Ragnarok
Ragnarok's picture

Bernanke's plan of "as long as the USA goes bust last we win" is going pretty well.  What comes after is anyone's guess, SDR, Amero, Gold standard, Freegold?  Must negotiate from a position of power. LOL.

Wed, 02/02/2011 - 18:03 | Link to Comment topcallingtroll
topcallingtroll's picture

Tis true. When the only sources of liquidity is the fed and china then we sorta win. More deficit without tears please

Wed, 02/02/2011 - 17:40 | Link to Comment Tric
Tric's picture

Why won't commodities collapse like they did in 2008? 

Wed, 02/02/2011 - 17:44 | Link to Comment tmosley
tmosley's picture

Lots of money printing going on in 2011.

Consumption has already been cut.  What we have here is price-push inflation from money printing.  A fall in demand will simply cause businesses to close up shop.  They can't cut prices and remain profitable (margins have already been cut 20% as per the earlier story).  They also don't have any savings left to fall back on.  Only printed money.  

Wed, 02/02/2011 - 17:58 | Link to Comment topcallingtroll
topcallingtroll's picture

Respectable opinion. We shall see. The fed is not going to try to take away all the pain with qe just enough to move the rebalancing along. We will probably see a.lot of creative destruction soon but benny will limit the punch just enough to keep serious inflation away. In benny I sorta trust because I am stuck in this vehicle and he is driving. If some yanker tries to wreck the car or slash the tires in a fit of austrian religious fervor we will all die. Shut up and eat your gruel people and be glad.you have it. Complaining does no good.

Wed, 02/02/2011 - 18:29 | Link to Comment DoctoRx
DoctoRx's picture

Tmosley - you are a voice of reason and knowledge.  

Do you have specific knowledge of supply dynamics in the industrial world re silver?

Wed, 02/02/2011 - 19:05 | Link to Comment tmosley
tmosley's picture

I am not directly involved, though I have done a lot of research on the subject from publicly available sources.  Suffice it to say that we use at least 200 million ounces more than we produce each year, with the remainder coming from old government hoards, which are now on the verge of running out or being shut off (with China holding the last great hoard).

It all comes down to this:  buy physical silver and hold it.  There will be an industrial panic the likes of which the world has never seen.  Even absent the hyperinflationary dynamic likely to take hold in the coming months and years, silver would still be the trade of the century.  As it is now, it will be the trade of the millennium, like shorting Rome and going long Germanic tribes.  As industry screams for silver, sell it to them, but only for gold.  Use your gold to ride out the hyperinflation.  Buy productive assets when no-one else wants them.  This includes stocks, real estate, durable industrial machinery, etc.  This is how great fortunes are made.

Wed, 02/02/2011 - 17:41 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

 Are people checking on Ben at all? Have they looked in his office? Is he collecting jars of his own urine?

Wed, 02/02/2011 - 17:41 | Link to Comment Misean
Misean's picture

Don't squeeze the Charmin?

Wed, 02/02/2011 - 17:42 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

Cottonelle?

Wed, 02/02/2011 - 17:47 | Link to Comment Misean
Misean's picture

Pick your poison...gonna be too expensive to wipe your ass with by summer time anyway.

I'm going long leaves and lawn clippings...

Wed, 02/02/2011 - 17:52 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

I plan to use dollar bills.

Wed, 02/02/2011 - 17:54 | Link to Comment Misean
Misean's picture

Scrap value, mate! There's cotton in them thar bills!

Wed, 02/02/2011 - 17:57 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

Lol. Excellent point.  I guess I ought to start saving my dryer and belly button lint, too.

Wed, 02/02/2011 - 17:48 | Link to Comment buzzsaw99
buzzsaw99's picture

All part of the plan. Bernanke's final solution.

Wed, 02/02/2011 - 17:49 | Link to Comment Misean
Misean's picture

Printing macht frei?

Wed, 02/02/2011 - 17:54 | Link to Comment buzzsaw99
buzzsaw99's picture

war reparations.

the irony, it hurts.

Wed, 02/02/2011 - 17:48 | Link to Comment topcallingtroll
topcallingtroll's picture

Maria wont quit harping on inflation. I love that bitch. I am so jealous of snaggletooth santelli. Hey Maria. What has he got that I dont got?

Wed, 02/02/2011 - 17:50 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

The ass of deflationists is hurting SO HARD...

Wed, 02/02/2011 - 17:53 | Link to Comment JonNadler
JonNadler's picture

what do they say about an ounce of gold being worth a good man's suit.

Well, that suit just got a lot more expensive to make, and guess what is going to go up soon

Wed, 02/02/2011 - 17:54 | Link to Comment Ragnarok
Ragnarok's picture

How much is wool up?

Wed, 02/02/2011 - 17:58 | Link to Comment william the bastard
william the bastard's picture

Meat dresses are in vogue now.

Thu, 02/03/2011 - 02:16 | Link to Comment StychoKiller
StychoKiller's picture

Don't let the zombies catch you in one, they won't know where the "clothing" ends and the meat-puppet begins! :>D

Wed, 02/02/2011 - 17:53 | Link to Comment zebra
zebra's picture

the market will top the day when ZH run out of bad news.

Wed, 02/02/2011 - 19:09 | Link to Comment JonNadler
JonNadler's picture

in other words you're a long term bull

Wed, 02/02/2011 - 20:31 | Link to Comment zebra
zebra's picture

LOL

i once heard a rumor that Wall St has a robot to scan the blogs for sentiment and drive the market the other way.

Wed, 02/02/2011 - 17:54 | Link to Comment oogs66
oogs66's picture

It just hit me. Ben is a genius. QE2 is actually massively deflationary. By pushing up the price of food and energy Americans will eat less and walk more driving down long term health care costs! It's brilliant. We will all be on the bernank diet. And it's easy to stick to since it's not a choice.

Wed, 02/02/2011 - 17:56 | Link to Comment buzzsaw99
buzzsaw99's picture

genocidal ben is good then?

Wed, 02/02/2011 - 18:12 | Link to Comment oogs66
oogs66's picture

Sure we all diet and on top of it Americans can earn 20 dollars an hour for working on assembly lines again eventually. Mind you 20 dollars won't but a happy meal at micky d's but they will get their 20 bucks an hour. Ben knows we are to stupid and stubborn and lazy to lose weight or work at competitive rates but dollar devaluation will fix all that without th sheeple even knowing. Their next trip to Asia might cost more... Who am I kidding - most Americans don't know where Canada is, let alone travel to Asia

Wed, 02/02/2011 - 18:44 | Link to Comment topcallingtroll
topcallingtroll's picture

It should work. It beats collapse. I want my pain given to me in little bitty pieces over five or so years. It will give us more time to get used to it. Less problems that way. We have to lose some of our standard of living one way or another anyway. It was all borrowed.from the.future and now the future has come a knockin.

Wed, 02/02/2011 - 17:56 | Link to Comment HamyWanger
HamyWanger's picture

This is somewhat misleading. Cotton may be up thanks to territorial and environmental factors, but gold and silver severely lag behind.

Inflation only happens in the amount of semen emitted during the wet dreams of permadoomer silver bugs.

Wed, 02/02/2011 - 18:14 | Link to Comment buzzsaw99
buzzsaw99's picture

it was a priviledge junking this comment.

edit: I am well aware that this is hamy.

Wed, 02/02/2011 - 17:59 | Link to Comment topcallingtroll
topcallingtroll's picture

Uh...guys....better check your sarcasm meter.....this is hamy not harry.

Wed, 02/02/2011 - 19:41 | Link to Comment PhattyBuoy
PhattyBuoy's picture

+∞

Careful HaMy ... HaRRy is going to start stealing your material !

Wed, 02/02/2011 - 17:56 | Link to Comment KevinH
KevinH's picture

For those interested, wool prices in China has more than doubled since early 2010, with wool fabric mills trying to pass on as much of the cost to fashion designers/manufacturers as possible. In 2009, it was possible to buy wool fabrics for suits at under $5/yard, with some poly/wool combo in the $4ish range. Now, the cheapest poly/wool blend is in the $5.50 range, with decent fabrics being $7 and higher. Compressed margins? I think so...

Wed, 02/02/2011 - 18:06 | Link to Comment topcallingtroll
topcallingtroll's picture

Hey anybody watching fast money? Steve cortes is short oil and thinks inflation is a real pussy.

Wed, 02/02/2011 - 18:24 | Link to Comment tickhound
tickhound's picture

No need to watch... Just read ure post. Same shit, different medium.

Wed, 02/02/2011 - 18:36 | Link to Comment topcallingtroll
topcallingtroll's picture

Glad i can save you some time!

Wed, 02/02/2011 - 18:08 | Link to Comment Gimp
Gimp's picture

I see price cuts at the local malls on the usual suspect cotton shirt labels, Polo, Lacoste, Nautica, Tommy Hilfiger and more.... with rising commodity prices  and the lack of shoppers the retailers are going to have a rough spring/summer.

Apple store still busy at 11:00 am with people buying devices. Customers don't look employed or employable. Welfare must be paying well.

Wed, 02/02/2011 - 18:09 | Link to Comment Tric
Tric's picture

How much of this is attributable to the carry trade?  Couldn't this very easily unwind?   I know there is some inflation, but I think deflation could wreak some unexpected havoc.  The commodities trade seems a little too simple, there has to be a curveball that is going to slam people. 

Wed, 02/02/2011 - 18:14 | Link to Comment topcallingtroll
topcallingtroll's picture

The suspicion is this is all carry trade highly margined speculative stuff and the final demand is not there to support it. I sure wish we had a good way to measure this huge dollar short position right now, both with traders and sovereigns.

Wed, 02/02/2011 - 18:15 | Link to Comment Janice
Janice's picture

Hey! Don't nobody go crapping in my high cotton.

Wed, 02/02/2011 - 18:20 | Link to Comment Silversinner
Silversinner's picture

Problem with this wold is that hard

working farmers, factory workers and

mine workers are not appreciated

enough.Their wealth is constantly

stolen by lot of non wealth producing

members of society and on top of that

treated like dirt.If you want your goods

for a reasonable price,you have to produce

enough of it.This requires capital and labor,

but with all capital going into speculation

(banks) and government,not enough invested

in mining and farming.

Wed, 02/02/2011 - 18:29 | Link to Comment Sausagemaker
Sausagemaker's picture

Maxwell Smart plays The Bernank:

http://www.imdb.com/title/tt0081249/

Wed, 02/02/2011 - 18:44 | Link to Comment DoctoRx
DoctoRx's picture

The wife just returned from Nordstrom's.  Her usual lip gloss just exploded in price from $22-23 to $30.  (Of course it's not made of cotton.)  Due to goosing of industry and MSM success in scaring some of the people from gold, Au now is a bit undervalued c/w oil, using a 15:1 ratio as average.

So what if cotton is overdone on the long side.  That's what happens in bull markets for commodities due to flagrant money-printing.  Stock charts have begun reflecting the trend but are just getting going.  See SU, HP, etc.  Meanwhile users of commodities have had multi-decade uptrends in operating margins and have begun to have failing charts.  See CL e.g.

TD is "with" the major trend.  BTFcommoditiesD if we get an "ordinary" selloff.  Trolls need to understand that it just is not time yet for deflation except deflation in prices of Federal debt instruments and the average American's standard of living.

Wed, 02/02/2011 - 19:00 | Link to Comment topcallingtroll
topcallingtroll's picture

I would probably btfcd too. I think we are in for mostly range bound trading the next few years with commodities providing the only small real gains over the next five years. However we have a few events on the horizon that might derail commodities for a while..wait. cramer just started....Booyah!

Wed, 02/02/2011 - 19:03 | Link to Comment robertocarlos
robertocarlos's picture

NFLX is still a bargain.

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