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Gold Celebrates Complete Lack Of Inflation By Surging To New Record
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...
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gentleman jim tosses robottrader a franklin half and a $20 green coupon for a tip.
He won't show is face around here because I would post this:
Futures are skying! Sell gold, buy bank stocks!
RobotTrader - Fri, Apr 15, 2011 - 08:38 AM
LOL, I told all the anarchists at ZH last night, warning them of a rotation out of GLD and SLV into XLF......
amazing. i watched the futures all night (cst) and into the morning and never saw futures skying. he needs an intervention. i think the market is going to destroy him psychologically.
"destroy him psychologically" unless he is a paid shill trying to do the same to ZH readers
if he's a shill he's as lousy at it as he is at trading.
"destroy him psychologically" unless he is a paid shill trying to do the same to ZH readers
His new thing today:
"The market is not pricing in QE3, the market is pricing in an economic boom, led by the US consumer."
I shit you not.
remarkable. he obviously doesn't read the food stamp posts or the labor participation posts if he thinks the consumer will lead us out of the maze.
Technically he`s right. Inflation is everywhere and always a monetary phenomenon. i.e. the sniffles don`t cause the cold, they are demonstrative of having a cold. Plosser 1 TD 0.
Well to be fair, I dont think TD has ever said 'high oil prices cause inflation'.
You are correct and thus I stand corrected: Plosser 1 TD _.
Wow. Plosser 1, for stating something so obvious it shouldn't need stating. How generous of you.
Interesting article on Jesse's sight this morning.
http://jessescrossroadscafe.blogspot.com/2011/04/run-on-central-bank-of-...
We need a new commodity to trade. I suggest Presidential Public Promises (PPP). PPP Futures long contracts would bet that the President keeps his promises and PPP shorts would bet the promises would be abrogated. You can imagine the frenzy in the pits after Obama's speech on deficit reduction. This would be a way for the public to hedge Presidential promises such as middle class tax reduction. In this scenario the President would promise tax cuts for middle Americans and doubters would short the PPPs 12 month contracts. That way if the President doesn't keep his promises you are covered. Anyone willing to go long?
If I could short politicians and their promises I'd own the Fed.
Everyone in the world thinks ignoring price changes for food and energy in the price inflation analysis is nonsense, with the exception of course, of people at the FED and the main stream economic establishment. Both would fail a class in home economics. Unfortunately, these folks are in charge so they inflate the currency to their hearts content. All we can do is get rid of cash and buy gold & silver and any other inflation hedge one likes. The path of least resistance is higher prices for gold & silver so long as the credit printing continues.
http://www.TheAngryGrapes.Com
The BLS... Bureau of Lying Scum.
I'm hoping thier indexed pensions ar attached to this number.
PS...
That damn gold keeps getting stuck in my teeth,oh well mmm mmm good.
Gold, and silver have been outperforming the DOW for a while. Silver looking at the 10 year historical graph, shows that since the bubble bursting, that silver has more than recouped it's value, and infact surpassed it very well. Compared to the DOW which reached it's peak over 14,000, it's just over 12,000. Gold, and silver have remarkably outperformed the DOW. The DOW has not even recouped it's value, much less surpass it. Gold, and silver is the best choice of the last decade. The only reason you should be in the stock market is for dividends, or knowing how to get out of stock bubbles before they burst. Inflation running at around 10% in real terms versus the hedonics of measurement today. You better off owning physical things like commodities than even bonds. From 2000 to 2010, US economy went through 2 economic bubbles. 2 bubbles within a decade. Easy monetary policy, and money printing. Even looking from 30 graph, interest rates have progressively eased from the highs of the 80's to now 0.25%. The longer this stays the greater the risk there is another economic contraction yet again. What is safer? For the time being, I suspect commodities, but stay liquid, because you need to pay bills, and stuff.
" 2 bubbles within a decade. Easy monetary policy, and money printing."
Yep, those Neo-Con economists and "financial geniuses" er, "the Committee to Save the World (and bail out their FAILED, BANKRUPT, congress-bribing GS, JPM, Wall St bankster friends) stalwart financial leaders" really know what they're doing! http://www.time.com/time/covers/0,16641,19990215,00.html
(or as Matt Taibbi put it, ALL roads in this econ crisis lead... directly to robert rubin.... gees, thanks, bob! ) http://www.huffingtonpost.com/2009/12/03/matt-taibbi-obamas-big-se_n_378705.html
I keep waiting on a break in the run up so I can BTFD, but there's no give. Falls back a few bucks here and there, but no major correction.
Wealth effect bitchezzzz
Fucking priceless headline. Tyler you rock.
Kindly please, provide an historic example of a fiat currency regime ending in deflation and not massive hyperinflation.
I'll wait.
You simply confused by black and white terms of inflation, and deflation. There is monetary inflation, when there is money printing, then there is price inflation, where prices increase due to regulation, taxes, and reduced supply while increased demand, that is price inflation. Monetary inflation doesn't necessarily change supply, which is real wealth. Money is not a store of value, it's merely a legal exchange. Increase in money supply can increase demand, but no increase in supply. The reason for elastic currency is to deflate the money supply, or inflate the money supply accordingly to the economic growth, real growth, that is increased supply. Those who hold cash the last are the suckers. There is no reason to hold cash, or invest in low yielding products that don't surpass inflation, or keep up with inflation. There is no hyperinflation right now, but there is inflation. With stable money supply, cash becomes a store of value, thus people don't focus on losing purchasing power by holding it, but rather looking to make more money purely. Deflation in money supply means there is less money, so prices have to adjust, so money you hold becomes more valuable. The average american buys a lot of junk, that depreciates simply because it's older, unless it's a rare piece of history like a rare work of art. In such case, money supply increases, but supply remains the same, as such silver, and gold for example remain relatively the same compared to cash. When a government runs out of hard currency, it turns to soft currency, that is money printing in fiat terms. That is why debt continues to grow bigger, and bigger through out the years, and prices increase, however these days, the foot is pressed on the peddle to accelerate the process in attempt to increase productive growth. Monetary inflation creates inflation in a economy as a whole. Price inflation is simply demand shifting to different assets without any necessary money printing. This is what I call price, and monetary inflation.
I follow your thinking. So...
* what happens when QE2 ends?
* what happens with global growth slows?
* what happens to PMs with respect to the above 2 questions?
* Who's right - PIMCO or Gundlach re. US Treasuries?
You simply confused by black and white terms of inflation, and deflation. There is monetary inflation, when there is money printing, then there is price inflation, where prices increase due to regulation, taxes, and reduced supply while increased demand, that is price inflation. Monetary inflation doesn't necessarily change supply, which is real wealth. Money is not a store of value, it's merely a legal exchange. Increase in money supply can increase demand, but no increase in supply. The reason for elastic currency is to deflate the money supply, or inflate the money supply accordingly to the economic growth, real growth, that is increased supply. Those who hold cash the last are the suckers. There is no reason to hold cash, or invest in low yielding products that don't surpass inflation, or keep up with inflation. There is no hyperinflation right now, but there is inflation. With stable money supply, cash becomes a store of value, thus people don't focus on losing purchasing power by holding it, but rather looking to make more money purely. Deflation in money supply means there is less money, so prices have to adjust, so money you hold becomes more valuable. The average american buys a lot of junk, that depreciates simply because it's older, unless it's a rare piece of history like a rare work of art. In such case, money supply increases, but supply remains the same, as such silver, and gold for example remain relatively the same compared to cash. When a government runs out of hard currency, it turns to soft currency, that is money printing in fiat terms. That is why debt continues to grow bigger, and bigger through out the years, and prices increase, however these days, the foot is pressed on the peddle to accelerate the process in attempt to increase productive growth. Monetary inflation creates inflation in a economy as a whole. Price inflation is simply demand shifting to different assets without any necessary money printing. This is what I call price, and monetary inflation.
Terrific comment, with a couple of caveats, and a couple of add-ons.
#1. "Increase in money supply can increase demand, but no increase in supply." Increase in money CAN INCREASE SUPPLY in many cases, as well. For example, those apples rotting in the orchards in Washington state, as Americans went hungry during the Great Depression, because there was no mony to pay to harvest them, and ship them. A LITTLE MONEY SUPPLY COULD have gone a LONG WAY, which is why it is a reasonable suspicion to ask, "Did the Fed INTENTIONALLY CREATE the Great Depression?" (by CONTRACTING the money supply.) (The ultimate proof of this contention, AND of KEYNSIAN economics, was the terrific expansion of WWII industrial production: RESOURCES, including commodities, labor, and financial capabilities, that WERE DORMANT during the Depression, were suddenly fired up & productive in 4 years flat - there was NOT ONE ELEMENT PRESENT in the wartime full production years, that wasn't available in the Depression, besides motivation, leadership, & urgency.
#2. "That is why debt continues to grow bigger, and bigger through out the years, and prices increase, however these days, the foot is pressed on the peddle to accelerate the process in attempt to increase productive growth."
I would argue that Bernanke, the Fed, and the GS/JPM swindlers are NOT "trying" to INCREASE PRODUCTIVE GROWTH - in the manner of feudal lords, they are on a SLASH & BURN effort to IMPOVERISH & CONTRACT the economy, because that puts them farther atop the heap above the lowly masses. See the Mongols rampaging through China & Central Asia, the Romans through Carthage; William the Conqueror slashing, burning, & murdering his way through Northern England "the Harrying of the North," http://en.wikipedia.org/wiki/Harrying_of_the_North
the Conquistadors pillaging their way through the New World... or the British STARVING the Irish isles, through CONFISCATION of Irish (Catholic) property, handing it over to English (or Scots mercenary) hands, in a several-centuries slow-motion ethnic cleansing effort.
http://en.wikipedia.org/wiki/Great_Famine_(Ireland)#Laws_that_restricted_the_rights_of_the_Irish
See also Britain trying to strangle American commerce during the American Revolution.
If all this - INTENTIONAL ECONOMIC SABOTAGE by the bailouts- extorting "elites" - seems "absurd" or merely radical, explain the FANATIC HATE that the wealthy & Right-Wingers hold for social security (which is PAID FOR by WORKER "withholding", NOT taxes on the wealthy!) - they really want to see the elderly crawl off and die in the back alleys!
and kindly don't hold your breath.
I have been ignoring the repeated Au/inflation discussions, and trying to perceive the PM runup as an ongoing currency devaluation, hiding in plain sight.
Not sure the workout, but someday the otherwise happy owners of equities, secure sovereign debt, real estate, profitable currency-pair and other positions suddenly discover the gold-value of their assets is down 50%, headed lower, and buyers can't be found.
Lead will soon be a Pm
Lead will soon be a Pm
Article title +100
You should know by now after reading the WJS you don't have to make this shit up it is already made up for you
but why infaltion for spain when the got silver from the new world? it its more oney fine but its also more wealth, if greenbacks where gold backs and they where printing more beacuae america had more gold ea month there would still be inflation.
exact opposite cause than the devaluation increase we have today or in zimbabwe. but still increase in money = inflation. weather its worthless paper or silver rounds.
Reality Now: Massive Price Increases at LDS Food Distribution Centers in Last Ninety Days
15 April 2011, by Mac Slavo (SHTF Plan)
http://www.shtfplan.com/headline-news/reality-now-massive-food-cost-increases-in-last-ninety-days-as-high-as-49-for-basic-goods_04152011
just wanted to thank tyler for his great writing: "...on the one hand, BLS,...on the other hand chas plosser,...(then we have) the third hand, which takes gold to a new all time high..."
Hahaha: is this zHen? the sound of 3 hands clapping? t.y., tyler!