Gold Celebrates Complete Lack Of Inflation By Surging To New Record

Tyler Durden's picture

On one hand we have the BLS telling us core inflation declined to a ludicrous 0.1%, on the other hand Charles Plosser just had a soundbite, captured for posterity, that "high oil prices don't cause inflation", but luckily confirming there is someone not taking crazy pills, is the third hand, which takes gold to a new all time high of $1,481.46. We wonder, of the three hands, which one is right...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thomas's picture

Plosser wouldn't lie.

e_goldstein's picture

Plosser is actually right. It's not high oil prices that cause inflation; it's the filthy Central Banking system.

Ray1968's picture

Right, inflation happens THEN commodity rises. The causality is reversed.

depression's picture

Agree 100%.

The justification for Fed policy is the 'deflating' housing market and persistently high unemployment. Falling house prices is no more deflationary than rising oil prices is inflationary. Every dollar increase in the price of Oil shaves off another 0.x% of GDP. The more $Trillion fiat they pump into the system the flatter GDP becomes in response, in this case excessive and uncontrolled expansion of the money supply is dampening the capacity of the real economy to respond. The Fed is pushing on a string.

DoChenRollingBearing's picture

The Bearing is on a vacation cruise with his family.

A clerk here in Cozumel (Mexico) just gave me a 1964 (silver) silver US quarter, worth over $7.00 is silver...

Lucky me!

mr_T's picture

I was down that way last week in tulum. Watch out for the policia taxing you right before the airport. Luckly, I only had 60 usd on me. Corruption so visable and freely practiced, at least they do it to your face.

Cash_is_Trash's picture

Plosser is Keynesian shit.

People today use the term `inflation' to refer to the phenomenon that is an inevitable consequence of inflation, that is the tendency of all prices and wage rates to rise. -- Von Mises

Plosser can't see the reason inflation occurs.

How about increasing the money supply when nobody wants to hold more fiat?

Change we can believe in -- you better believe this USSA Titanic is going under.

Roger Knights's picture

"Change we can believe in"

Silver coins!

tiger7905's picture

Great quote from Rick Rule:

“dollar is the world’s reserve currency so it’s the fiat currency that everybody is reserving special wrath for”

His thoughts on silver tightness:

HoofHearted's picture

Milton Friedman: "Inflation is always and everywhere a monetary phenomenon.

He was so good they gave him a Nobel Prize DESPITE the fact that he was known to tell the truth. (see Gore, Al; Krugman, Paul; Obama, Barack, etc.) 

Payable on Death's picture

I love uncle Milty. Still, I have not been able to reconcile his role in Nixon's closing of the gold window. Can you?

SgtSchultz's picture

For those who haven't watched, there are some terrific Friedman clips on YouTube.  Here is one of a five part Donahue interview but check out all the others on the right side.  Some are extremely entertaining.

If you only want to invest a couple of minutes, this is the classic Friedman v Donahue on "greed"




jus_lite_reading's picture

Yup.... the shits hitting the fan...

How long can they keep this up? Radition getting placed on the back burner to the situation in europe!

PulauHantu29's picture

great link. Hard to beleive Morgan Stanley is defaulting on its $3.3 Billion dollar property in Tokyo...ominous sign for Japan.

CrashisOptimistic's picture

Psst.  Sorry to clutter your gold thread with what is important (as if y'all don't do that to oil threads), but WTI just hit 109.


tmosley's picture

And where is silver?

Oh that's right, kicking oil's ass.

This crisis isn't peak oil.  Get over it.  Come back in ten years.

trav7777's picture

bc it doesn't require any energy to mine anything

Vendetta's picture

As does market manipulation, sky rocketing oil prices when the Baltic Dry Index is heading back to 2008 levels makes sense ... right?

Mark McGoldrick's picture

If the M1 multiplier is well beneath 1, can someone explain if this is indicative of an inflationary or deflationary environment?

(Hint: the answer starts with a "D")

Judging from this graph, the greater concern should be deflation, and if this graph worsens much further, we are about to experience a big fucking crunch. 

Worries about inflation is the "sheeple trade" and everyone is attempting to capitalize on it. Like every sheeple trade, it will work for awhile, but then it won't - in a BIG way.  

Always remember, the worst kept secrets prove to be the worst trades.

Edit in:  why do you think banks are hoarding over a $1T in reserves?  Why do you think Pimco is suddenly hoarding cash?  If they thought the US dollar was going to become worthless, they'd get rid of it, not hoard it. 

Stop drinking the fucking Kool Aid. You're being duped. 




Internet Tough Guy's picture

Yes, those banks are brilliant actors. Just look at their past performance. Why don't you hoard cash, just like them? Let us know how that works for you.

Robot Traders Mom's picture

Dude, go to the Huff Po and go spread your bullshit over there. Nobody here agrees with you, respects you, or even likes you.

You are reading into a manipulated M1 number, so go ahead and follow that closely. See how it works out for you. Secondly, you are implying deflation. Because you are a troll that lives in the basement of his parents house, you probably don't realize that the cost of food, gas, and clothing is going up dramatically. That is real life, not some fucking bullshit government number designed so that social retards like you can go on and blog about how everyone with an IQ much higher than yours is incorrect.

So go ahead and buy into the deflationary myth.


sun tzu's picture

Mark McDummy, your anger, use of profanity, and fed charts has certainly convinced me. I will immediately short all commodities because the USD is going to the mooooon!!!

trav7777's picture

shouldn't they be hoarding bonds?  Bc a coupon in a deflationary environment is like printing money

Hephasteus's picture

Have you heard the myth about deflation. Again.

It bears repeating.

There's this deflation force called zeus who lives on mount pimpalous. He was tasked with 12 great deeds.

It's real fucking simple here. Government overspending doesn't get paid in the future or by our babies. It get's paid within a year through inflation. 1.6 billion dollar budget deficit. That's the official number. You take the back door spending, the off balance sheet bullshit and inflation is a nightmare.

The rich pay all the taxes. LOL. That's another myth. The fed is not a fucking statisctics or facts organization. It's a myth maker. And it only spouts numbers you can't double check.

Hugh G Rection's picture

Gold- DOW parity, coming soon to an inflationary economy near you!

Popo's picture

Bernanke is f*cked.  He should be shaking in his boots.  But he still believes he can tap the brakes whenever he needs to.  Oh god I can't wait for him to try.  

Tap the brakes Ben.  Let's see what happens to equity markets when you try to do anything but print money, you ass.

SheepDog-One's picture

This is the one thing that makes for sleepless sweaty nights for and silver the bane to any bankzta.

BobPaulson's picture

Not to mention the deficit.

Cow's picture

Jim Rickards recently said that the Fed wouldn't need QE3, because they have 3 trillion on their balance sheet and the rolling over of that much debt will allow them to keep interest rates down.

ZeroPower's picture

Nice title. Interchangeable w/ SI

mick_richfield's picture

Huzzah!   I think I'll celebrate by filling my tank with gas!


mayhem_korner's picture

That'll be 2 oz of silver, plz.

Long-John-Silver's picture

It depends on what your filling up. It would require 1/2 oz gold eagle to fill up a tractor trailer rig.

Dr. Richard Head's picture

I'll keep my silver for now thanks.  Do you still accept 2-ply Federal Reserve Notes?  If so, I will trade you some of this paper for your goods. 

I love counting out Federal Reserve Notes when paying for something of value.  I always ask, regardless of where I am paying for something, "Do you still take Federal Reserve Notes?"  Sometimes I get the blank stare, other times I end up in some interesting conversations with other patrons around me. 

As long as suckers continue to take these notes, I will trade them for something good.

Diplodicus Rex's picture

Sometimes in the comments section you get an absolute gem and this is one of those occasions. I had a hearty chuckle to myself over the line "Do you still take Federal Reserve Notes?".

I doff my cap to you sir !

sagerxx's picture

Second that.  Thanks for the laugh!


Strider52's picture

I was ROTFL when someone wrote "Too Corrupt to Prosecute" a few days ago.

Temporalist's picture

I like Nouriel Roubini's reply in "Inside Job" when asked why there hasn't been a more systematic investigation undertaken he said:

"Because then you'll find the culprits."

Dr. Richard Head's picture

Thank you.  I used to get so angry about the situation that is imposed with us because of fiat currency.  Now I try shock therapy to those I encounter and humor. 

All I know is that there are wayyyyyyy toooooooo many bernanking zombies out there in this Amerika.  Bernanking zombies son of a bernankes, but I once stood where they stand now.  Still, hard to have too much sympathy for them anymore.  Their candid complacency is part of the problem too.

SheepDog-One's picture

LOL great idea, Im saying that now in every store I go to. 

Dr. Richard Head's picture

Had a lady behind the cash register of food joint look and me and say in response to my FRN question, "Yes we do.  By the way, I just sold a bunch of old silver for $700 the other day, so if you have any of that you can get a good price for it."

I responded, "That's a shame, you are about to miss a huge increase in silver.  Pay attention to the price over the next month or three and you will be kicking yourself.  Chances are you will be a cashier for many more moons.  Take care."

dark pools of soros's picture

ok, now you are just making shit up...  and you will be a commenter for many more moons instead of a best selling writer

dark pools of soros's picture

but how do you still have them if you laugh at people who accept them??  you must be taking them too... 

sheeple's picture

dow's going to trade 1 to 1 with silver soon, SLA in all fronts