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Inflation Explained

Tyler Durden's picture




 

From the bears who explained quantitative easing so that even CNBC anchors now know what POMO is, comes the follow up: Inflation explained. So easy that no Ivy League Ph.D. is guaranteed to understand it.

Via Omid Malekan

 

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Fri, 04/15/2011 - 15:01 | 1173537 WaterWings
WaterWings's picture

Economics: Taking both sides so you can always be right.

Fri, 04/15/2011 - 15:12 | 1173575 Herd Redirectio...
Herd Redirection Committee's picture

Check out the work being done at the Capital Research Institute:

http://www.capitalresearchinstitute.org

"On Psychology & Markets"

More and more people are catching on to the fact that two sets of rules are currently in place, one for the MEGAwealthy (net worth > $100 m), and one for the rest of us.  Besides the issue of the US government’s debt problems,  and spending more than they earn, there is the problem of the US dollar (world reserve fiat currency) on its deathbed, with a privately -owned central bank (the Federal Reserve) that has proven beyond a shadow of a doubt to have ONLY the interests of its private owners in mind.   Not only were the bailouts in 2008 a mistake, they were the largest theft in the history of mankind!  It was the largest reverse Robin Hood story in history!  The rich stealing from the poor to a degree only imagined (and probably salivated over) by the ‘great’ tyrants of the early 20th century, John D Rockefeller and JP Morgan.  Now in the 21st century we get Henry Paulson, Hank Greenberg, Ben Bernanke, Lloyd Blankfein,  Jamie Dimon, etc.

The question left to ask, then, is why haven’t EVEN MORE people woken up to facts, and the dire situation we find ourselves in?

Fri, 04/15/2011 - 15:24 | 1173635 redpill
redpill's picture

The poor get screwed, and in their enraged efforts to get revenge and advocate tax policy that goes after "the rich" they only succeed in screwing the middle, who don't have a lot saved and who don't have the resources to dodge taxes like their wealthy counterparts do.  In other words, unless you are on the bleeding edge of the QE-inspired wealth parabola, you're going to get eaten, either because you're poor and you're getting crushed by inflation, or because you're middle-class and the poor will eat you because you're the only thing they can reach.

Fri, 04/15/2011 - 15:52 | 1173783 Troublehoff
Troublehoff's picture

Bang on, redpill.

+

Fri, 04/15/2011 - 17:02 | 1174120 High Plains Drifter
High Plains Drifter's picture

this is why they invented walled communities. looking ahead.......

Sat, 04/16/2011 - 04:35 | 1175478 superflyguy
superflyguy's picture

do they have electric fence and gun turrets?

Sat, 04/16/2011 - 12:01 | 1175875 JFK.4PREZ
JFK.4PREZ's picture

spot on.  

interesting video on how eating the rich won't even save us from our tsunami-sized defecit:   http://www.youtube.com/watch?v=661pi6K-8WQ

Sat, 04/16/2011 - 13:23 | 1176036 gkm
gkm's picture

Completely wrong.  If you look at history in hyperinflationary environments, the poor did quite well relatively.  It was the middle class that took the shaft crossways.  Think about it - in the US the poor are likely on food stamps and more likely to not be working, hence no gas cost.  On the other hand, if Mr and Mrs Smith are living off their savings which is earning zero and their food and gas goes up then they are relatively worse off.  If this continues, they become part of the poor and their relative wealth has been irreparably impaired.  

It's all relative but if you don't have much (but for example a piggy bank of copper pennies) some day you too could be a millionaire and buy something from someone who held t-bills which are worth less than toilet paper.  At least that was the way in Weimar.

Fri, 04/15/2011 - 16:50 | 1174033 alexanderstollznow
alexanderstollznow's picture

this might all make some sense were it not for the fact that almost all the TARP investments in banks have been paid back, with interest, + a profit on the warrants issued.  so the taxpayer isnt actually out of pocket on that side of it.  the only significant block of TARP outstanding is the investment in AIG.  AIG is paying back its TARP, and as of last month 70% of TARP was repaid.  the total amount was only about $400bn anyway, so that leaves about $120bn outstanding, most of which is represented by ownership of AIG.

it hardly needs to be stated that $120bn is hardly a great sum of money in the broad scheme of US fiscal position. all the more as it is actually currently secured by an asset and seems likely to be all paid back in the long run.  the $120bn is, for instance, about 1/5th of the sum wasted in Iraq for no useful outcome at all, and that is one thing the rantocracy on ZH cant blame Obama for.    

anyway, dont let these facts get in the way of good story.

Fri, 04/15/2011 - 17:37 | 1174280 lunaticfringe
lunaticfringe's picture

dude, not sure where you got your figures and conclusions...not supported by any media I read.

Fri, 04/15/2011 - 19:26 | 1174685 Herd Redirectio...
Herd Redirection Committee's picture

Either a paid shill, or he's drunk on the KoolAid.

Listen up, bro, as long as there are two sets of rules, not to mention no firm accounting standards being enforced, it doesn't matter if you think TARP was paid back or not.

TARP was at most 10% of the money that was conjured into existence back in October 2008.  How do we know whats on the Feds books any way?  By taking their word for it?

There's no:Mark to Market accounting

There is: a private banking cartel

TBTF banks

a fiat currency in the hands of an elite few. 

I could go on... 

 

Sat, 04/16/2011 - 00:24 | 1175332 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

As long as Obama never sends the military to a predominantly Islamic nation with oil everything will always be Bush's fault.

Sat, 04/16/2011 - 07:07 | 1175531 just_looking
just_looking's picture

You seem to have some knowledge of the situation, so it suprises me that you believe that TARP was the only money 'spent' on bailing out the banks. 

Sat, 04/16/2011 - 10:55 | 1175743 raymondrza
raymondrza's picture

Are all the lost jobs paid back as well?  The tiny sum of 120bn is irrelevant when compared to the impact on unemployment.  Such a reckless diatribe.

Fri, 04/15/2011 - 15:16 | 1173597 Gully Foyle
Gully Foyle's picture

Why is Gordon Freeman explaining this to Davey's Mother?

Sat, 04/16/2011 - 08:01 | 1175556 Anonymouse
Anonymouse's picture

+10.  Hilarious

Fri, 04/15/2011 - 15:37 | 1173678 oh_bama
oh_bama's picture
  • THOSE GUYS ARE WAY TOO NEGATIVE AND UNAMERICAN!
  • WE NEED PATRIOTIC PEOPLE FOR THE ECONOMY TO GROW!
  • INFLATION EXPECTATION IS STILL WAY TOO LOW even after recent mild increase in food and energy prices. THIS MUST BE FIXED!!
  • BEN---QE3 PLEASE!! JUST DO IT!!
Fri, 04/15/2011 - 16:24 | 1173943 waylon153
waylon153's picture

"WE NEED PATRIOTIC PEOPLE FOR THE ECONOMY TO GROW!"

Who is John Gault?  Just watched Atlas Shrugged and that sounds just like a line from one of the societal freeloaders.  Good movie, Graham Beckel plays Ellis Wyatt.

Fri, 04/15/2011 - 16:58 | 1174101 Turd Ferguson
Turd Ferguson's picture

This is absolutely fantastic. I just wish I could get every American to watch it.

Fri, 04/15/2011 - 15:04 | 1173540 Alcoholic Nativ...
Alcoholic Native American's picture

Yes.

Fri, 04/15/2011 - 15:16 | 1173598 Dr. Richard Head
Dr. Richard Head's picture

Yes indeed.

My LinkedIn contacts have been given one to two links from ZH daily.  I wonder how many of them have been taking a look.  What I do know is that many "financial advisors" have been scoping out my profile now and I am not in an industry segment that has any sort of dealings with financial work. 

ZH - a beacon of truth in a sea of lies.

Fri, 04/15/2011 - 16:59 | 1174108 equity_momo
equity_momo's picture

Amen to that Dick

Fri, 04/15/2011 - 15:04 | 1173542 redpill
redpill's picture

"Yes, economists like to say contradictory things."

lol, understatement of the century

Fri, 04/15/2011 - 15:08 | 1173557 DaveyJones
DaveyJones's picture

they do and don't like to

Fri, 04/15/2011 - 15:11 | 1173570 redpill
redpill's picture

Arrr, ye a clever one DaveyJones.  Have ye considered a career in high finance?

Fri, 04/15/2011 - 15:38 | 1173684 camoes
camoes's picture

We also have game theory to justify lying, cheating and avoid transparency, they are just using Nash Equilibrium, it's optimal for them to say there is no inflation

Fri, 04/15/2011 - 15:53 | 1173789 Hephasteus
Hephasteus's picture

It's said that a contradictory mind is a sign of a superior intellect. But only by full of shit people.

Fri, 04/15/2011 - 16:43 | 1174028 knowless
knowless's picture

you need to quit thinking in black and white, try to appreciate the shades of grey.

Fri, 04/15/2011 - 23:42 | 1175262 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

"sweat not the corrections for they are as a fart is to the wind."

Fri, 04/15/2011 - 15:07 | 1173552 Verstehen
Fri, 04/15/2011 - 15:27 | 1173636 cossack55
cossack55's picture

Like it but too far out.  I'm already old and don't want to miss the end game.  Can you bring it up to 2014, or even earlier.

Fri, 04/15/2011 - 15:07 | 1173553 unclebigs
unclebigs's picture

Dummies....a $10.00 roll of '64 Kennedy Half Dollars now goes for $300.00.  Have wages increased 30x since 1964?  No.  They've increased around 5x.  The inflation trade is over.

Time to bend over and open the butt cheeks.

 

 

Fri, 04/15/2011 - 15:18 | 1173604 Dr. Richard Head
Dr. Richard Head's picture

Nice.  I just picked up all of the Kennedy Half Dollars from my local ghetto currency exchange market (pawn shop) for UNDER melt value.  Nice......

Fri, 04/15/2011 - 23:24 | 1175229 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

did same a few weeks ago.  shiny ones too!

"sweat not the corrections for they are as a fart is to the wind."

Fri, 04/15/2011 - 15:07 | 1173554 dogbreath
Fri, 04/15/2011 - 23:28 | 1175236 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

max is such a looney you gotta love him.  funny and smart and caring.  great guy.

btw many think i'm looney too, but i do see a few of those peeps coming around with some great questions.....  seeds do grow.  there is hope!

Fri, 04/15/2011 - 15:08 | 1173558 Careless Whisper
Careless Whisper's picture

brb... gotta check my full tilt poker account

Fri, 04/15/2011 - 15:11 | 1173562 John McCloy
John McCloy's picture

Some super hero analyst on CNBC a minute ago said even though he was wrong on gold and commodities he would take profits in the event a "Sell in May scenario arises and put cash to work when momentum returns"

  When asked if he is afraid of QE2 ending and that is his basis he said, "Oh no..not QE2 ending I BELIEVE THAT MARKET HAS BAKED THIS IN"

That is great news fellow ZHer's. Did you know QE2's end was baked in?

UPDATE:

"This is not real inflation because there is no wage inflation" He repeats that commodity inflation is not actual inflation.

Fri, 04/15/2011 - 15:13 | 1173587 redpill
redpill's picture

Real inflation is a lot more fair than commodity inflation, then.

Fri, 04/15/2011 - 15:20 | 1173606 Crummy
Crummy's picture

Yes, unless you are living off savings.

Fri, 04/15/2011 - 15:26 | 1173643 redpill
redpill's picture

Well in that case you're screwed either way.  But that's sort of a given. No-keynesian-body likes a saver, doncha know.

Fri, 04/15/2011 - 15:21 | 1173611 Dr. Richard Head
Dr. Richard Head's picture

It depends on what the definition of real is.

Fri, 04/15/2011 - 15:51 | 1173776 Caviar Emptor
Caviar Emptor's picture

I keep sayin': without wage inflation it's not the stagflation that everyone keeps pontificating about, like in the 1970s. During that decade wages rose nearly as fast as CPI, causing Supply-Siders to battle to come up with a plan: outsource labor costs by shipping jobs and factories overseas. They also did heavy work to break unions and collective bargaining power. The result has been 30 years of real wage deflation. 

So what we have today is biflation: commodities and anything tied to the paper economy is inflating thanks to Fed policy. THe real economy is in a deflationary spiral: Today CNBS reported California home prices deflated another 2.4% in one month. 

Lotsa Luck!

Fri, 04/15/2011 - 17:13 | 1174173 Thisson
Thisson's picture

No, what we have today is simply a preference change.  People now prefer McNuggets to McMansions.  Food > Housing.

Fri, 04/15/2011 - 18:41 | 1174560 Kickaha
Kickaha's picture

Foreclosures are not generally considered to be "sales" which are figured into the statistics.  It would be more accurate to say that California's phony statistics are now 2.4% closer to the actual fair market value of housing right now, which is somewhere far south of the statistical number.

Sat, 04/16/2011 - 14:18 | 1176169 Waterfallsparkles
Waterfallsparkles's picture

I went to appeal my Property Taxes and the Assessor would not consider any Auction sales.  Even though the house next to one of mine sold for $25,000. less than my assessement. They also will not consider Foreclosure sales by Banks.  I do not understand because these are arms lengths transactions.  So, the Counties will not even consider the lowest priced sales for your property assessment.  Bummer.

Fri, 04/15/2011 - 16:19 | 1173919 InconvenientCou...
InconvenientCounterParty's picture

Ever tasted a cake with every conceivable thing baked in?

I have and it's not good.

Fri, 04/15/2011 - 15:14 | 1173584 takeaction
takeaction's picture

Brothers on Zero Hedge....I own a monster electronics store on the west coast.  Just got letters from Sony, and Kenwood....for huge disruptions in supply chain due to Japan Nuclear Disaster.  Many of the companies that make the chip sets and Knobs for these companies have to be abandoned.  Also we just received a 5% increase accross the board on all products due to a falling dollar.  Here is part of the letter from Sony..

.

"During this period of uncertainty Sony will stand strong alongside our valued retail partners. We commit to an orderly marketing plan that includes distribution stability, manageable and only necessary promotions, and inventory management which does not burden you on these issues.
.
I acknowledge that we have had to change our payment terms recently as a result of the cost of money in the USA. Please rest assured that we do not plan to introduce new MAP or margin erosion promotions that result in you bearing unreasonable burden. As a matter of fact, we will employ a playbook that matches the value of our product as determined by the consumer with the level of supply that is available. The traditional but very effective rule of supply and demand will be our guide."

.

MAP=Minimum advertised price.

.

What Sony is talking about is "Payment Terms".  We used to have 30 days to pay our bill from Sony as we do with all other manufacturers that we buy from.  Well, the paymnet terms went from 5% Net 30 to a straight Net 15.  This in essance is an increase in price of all SONY products by 5%.   Kenwood is doing the same thing. 

.

Also....last night, I drove my friend to the Toyota dealership to buy a new Highlander.  He bought one of the last ones in stock.  After talking with the owners of the Toyota dealership...they are expecting HUGE supply problems....

Just giving you a little insider heads up from what I am seeing.  This will really cut into many companies bottom line when it comes to profit reports.......

But as I have read here from you guys...

This is probably Bullish for stocks...LOL

 

Fri, 04/15/2011 - 15:17 | 1173601 Gully Foyle
Gully Foyle's picture

Hehe, knobs he said knobs, hehe

Fri, 04/15/2011 - 15:22 | 1173609 hedgeless_horseman
hedgeless_horseman's picture

Please rest assured that we do not plan to introduce new MAP or margin erosion promotions that result in you bearing unreasonable burden. As a matter of fact, we will employ a playbook that matches the value of our product as determined by the consumer with the level of supply that is available. The traditional but very effective rule of supply and demand will be our guide.

Inflation, bitchezzz!!!.

Fri, 04/15/2011 - 15:34 | 1173672 Long-John-Silver
Long-John-Silver's picture

I drove my friend to the Toyota dealership to buy a new Highlander.  He bought one of the last ones in stock.  After talking with the owners of the Toyota dealership...they are expecting HUGE supply problems....

 

If the factory can't get parts to build them what makes him think repair parts will be available? Buying a new vehicle because it's an orphan sounds really dumb to me.

Fri, 04/15/2011 - 15:48 | 1173748 Dreadker
Dreadker's picture

And that's why my nissan is for sale whilst the rest of the sheeple think it still has value ;-)

Fri, 04/15/2011 - 16:26 | 1173950 takeaction
takeaction's picture

His thought process is this.  He had a piece of Shit 2000 Jeep Grand Cherokee, and he has always wanted a Toyota Highlander.  I told him to get into Silver about 3 years back, and he bought deep in the 6 digit silver $XXX,XXX and now he is up 4 times plus...so he took in a 795 ozs of Silver and a got a new car that will never break.  He paid around $9 for the Silver...so a new Toyota Highlander for $7115.00 (Original Silver Price Paid).  Inflation Bitches.  Skim some profits....get a new car!

Fri, 04/15/2011 - 23:41 | 1175259 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

right on takeaction.  i try and remind peeps all the time, quit thinkin in FRN's, think silver to frn not frn to silver.  a silver half dollar melts at over $15 now.  that means it's fifty cents for a fairly decent meal.  a frikin silver quarter buys a low-buck restaurant meal, melting out at $7.70.  tip is a silver dime and you're now the big shot with $3 on that dime. 

gotta get peeps to comprehend frn's are not required in commerce!

great to see your friend's thought, if he wanted new, that's his decision and he did good.  i still like my old truck from before nixon closed the gold window.  a much happier time....  lol.

Sun, 04/17/2011 - 17:33 | 1178513 Diogenes
Diogenes's picture

That's a good deal but 0% interest when inflation is roaring is a better deal. I would have bought the car with a low interest rate loan and kept the silver.

Fri, 04/15/2011 - 15:16 | 1173593 hedgeless_horseman
hedgeless_horseman's picture

"Dumb logic is at the core of modern economic theory."

FTMFW

Fri, 04/15/2011 - 15:23 | 1173614 medicalstudent
medicalstudent's picture

bwahahahaha.

 

we live in the world of lies.

 

full of distractions. and of stupidity (evolving to naivete) booby traps.

 

(reverse osmosis. polimaster.)

Fri, 04/15/2011 - 15:32 | 1173661 cossack55
cossack55's picture

"In a time of Universal Deceit, telling the truth is a revolutionary act."

 

Orwell

Fri, 04/15/2011 - 15:19 | 1173615 lieutenantjohnchard
lieutenantjohnchard's picture

nicely done.

Fri, 04/15/2011 - 15:31 | 1173619 Spalding_Smailes
Spalding_Smailes's picture

Many things can give the dollar a boost moving forward. 

 

The fall of the Yen, the China slowdown ( a monkey hammer for the commodity sector ) the end of QE & the jawboning of future rate hikes by Uncle Ben Shalom or even..... The restart of the Homeland Investment Act = thirst for dollars : circa 2004.

 

NEW YORK, Jan 21 (MNI) - For the past few months, there has been increased mention of the benefits that might arise from a new tax holiday for U.S. multi-national corporations, analysts said.

Last fall and again in the new year, U.S. corporate heads have been lobbying Congress for a new Homeland Investment Act, like that enacted in 2004.

The market wonders, "Will it work this time?" and what effects such new legislation would have on the currency market and the U.S. economy, they said.

The Homeland Investment Act of 2004, quickly dubbed HIA, was a 12-month window where U.S. corporates could repatriate overseas earnings at a 5.25% tax rate instead of the normal 35% tax rate.

http://imarketnews.com/node/25409

 

Fri, 04/15/2011 - 15:57 | 1173812 Caviar Emptor
Caviar Emptor's picture

Got news for you. Dollar dipped below 2010 lows and is heading for all time lows. And there's good reason for it. All part of the grand plan too. 

Fri, 04/15/2011 - 15:22 | 1173620 Pepe
Pepe's picture

We are not talking about economists here. We are talking about a group of techies whose common denominator is an absolute lack of human decency and who will eventually be flushed down the toliet like the real piece of shit they are. 

Fri, 04/15/2011 - 15:27 | 1173645 Yen Cross
Yen Cross's picture

 Inflation is that tool on CNBS, that was recommending investing in Australia. The ASX is popping off of highs. China is tightening. The AUD has been on a bull run from aud/usd 80. And commodities are so over bought it's pathetic. Not to mention qe-2 ending in June. He must be hedging that B.S.

Fri, 04/15/2011 - 15:45 | 1173721 Caviar Emptor
Caviar Emptor's picture

I'll go out on the limb: Gold $2,000 is in the bag. This year. Faster than you ever expected. 

Fri, 04/15/2011 - 15:48 | 1173735 PulauHantu29
PulauHantu29's picture

Now I understand why my savings are becoming worthless. Thank you.

Fri, 04/15/2011 - 15:49 | 1173742 augie
augie's picture

How Inflation really works as illustrated by the NYPD and a regular guy on the street.

 

 http://tinyurl.com/3brpw3d

Fri, 04/15/2011 - 16:03 | 1173834 MarcusAurelius
MarcusAurelius's picture

A very good explanation and one that I agree with. What Gentle Ben is clinging to is the fact that it hasn't affected Core Inflation yet. Part of Mr. Dudley's explanation of how economists measure whether inlfation is actually rising or falling. However Let us not forget what most key commodities are priced in? That is right, these commodities (especially oil) are priced in USD's. When the dollar index falls these commodities rise. This inverse relationship of all markets was shown early on by Robert Prechter which shows that credit is what is driving most markets as it ebbs and flows.

Fri, 04/15/2011 - 16:03 | 1173839 Troublehoff
Troublehoff's picture

On Ireland, Gary Jenkins, analyst at Evolution Securities: "Moody’s have just cut Ireland’s sovereign rating by two notches to Baa"

 

Suck it up, Sheeple. Baaaaa!

Fri, 04/15/2011 - 16:02 | 1173841 crash_davis
crash_davis's picture

gold to 10000 before its all over. Then we will use it to pay for stuff and the benny bucks will be used as toilet paper.

     Its a very good video but the bears are much more entertaining... especially when they use colorful explatives.

Fri, 04/15/2011 - 16:16 | 1173895 Destinapp
Destinapp's picture

This video explains it pretty well also:

http://www.video.me/ViewVideo.aspx?vid=409832

enjoy

Fri, 04/15/2011 - 16:16 | 1173903 mediamechanic
mediamechanic's picture
John Hathaway: Paper Money is Nothing More Than a Political Instrument

http://www.youtube.com/watch?v=B5X5Eh6qYiE


Fri, 04/15/2011 - 16:46 | 1174047 Temporalist
Temporalist's picture

Nice to listen someone with some sanity every once in a while.  Thanks for sharing that.

Fri, 04/15/2011 - 16:21 | 1173917 RobotTrader
RobotTrader's picture

New highs for PCLN at $520.

Who would have known that the "unintended consequences" and "cost push hyperinflation" would actually be applied to travel and leisure stocks?

In just a scant 2 years after the biggest financial bust in a generation?

Fri, 04/15/2011 - 16:28 | 1173960 d00daa
d00daa's picture

"The market isn't pricing in QE3, the market is pricing in an economic boom, led by the US consumer."  -RobotTrader

 

Fri, 04/15/2011 - 16:53 | 1174075 Spastica Rex
Spastica Rex's picture

Well..... nope. Boring.

Fri, 04/15/2011 - 21:07 | 1174902 IQ 145
IQ 145's picture

 What a neat short sale. Reccomended by all the newsletters, the consumate result of retail froth.

Sun, 04/17/2011 - 17:37 | 1178518 Diogenes
Diogenes's picture

What a neat thought. Has anyone tried shorting Robotrader's picks?

Sat, 04/16/2011 - 14:15 | 1176151 Waterfallsparkles
Waterfallsparkles's picture

To be fair they Pcln did have a reverse split of 6 for 1 years ago.  With that respect it probably is not that high.

Sun, 04/17/2011 - 17:34 | 1178516 Diogenes
Diogenes's picture

How about picking them before they go up? Anybody can find a chart after it goes up.

Fri, 04/15/2011 - 16:23 | 1173934 sbenard
sbenard's picture

These guys are brilliant! They sure know how to cut through the crap and explain things with clarity.

Fri, 04/15/2011 - 16:26 | 1173957 RobotTrader
RobotTrader's picture

Here's some "inflation".....

We are currently witnessing the beginning of the biggest stock market bubble in history.

Groupon IPO looks like it going to be $15 - $20 billion.

http://www.reuters.com/article/2011/04/15/us-groupon-idUSTRE73E02S20110415

 

Fri, 04/15/2011 - 16:29 | 1173965 d00daa
d00daa's picture

"The market isn't pricing in QE3, the market is pricing in an economic boom, led by the US consumer."  -RobotTrader

Fri, 04/15/2011 - 17:39 | 1174293 Thisson
Thisson's picture

First to say - groupon is crap.  It's spam e-mail, relabeled as something else.

Sat, 04/16/2011 - 17:04 | 1176468 Paul E. Math
Paul E. Math's picture

I agree.  I'm more of a long investor by habit but groupon looks like a great short opportunity. 

Someday people will wake up and realize that they never use half the groupons they collect and they'll stop using it entirely.  Shorting groupon is easy money.

Fri, 04/15/2011 - 21:08 | 1174906 IQ 145
IQ 145's picture

 Or the end of it; depends on your prejudice, I guess.

Fri, 04/15/2011 - 16:27 | 1173964 AldoHux_IV
AldoHux_IV's picture

Shit-anke has given himself carte blanche over how much inflation or currency destruction he can do by looking at the output gap-- fools will believe him and not even begin to realize that output from a couple years ago was primarily based on leverage that no longer exists (i.e. the housing bubble) so until there's something to replace that black hole-- it's QE 666.

Hang the fed. Overthrow Obama. Kick the idiots out of congress. Take our country back.

Fri, 04/15/2011 - 16:30 | 1173966 Dr. Impossible
Dr. Impossible's picture

Sweet...so my wife might have a chance to dump her scion?!?!?!?.....she be exstatic...i might just list it myself....wts 2011 scion xb under 20k mileage, $100,000 for parts only...

Fri, 04/15/2011 - 16:29 | 1173969 Audacity17
Audacity17's picture

Doesn't the treasury print money, and give it to the Fed to distribute in the banking system?  

Fri, 04/15/2011 - 16:33 | 1173980 redpill
redpill's picture

That's only physical cash.  Most of what is being "printed" these days is imaginary eDollars.

Fri, 04/15/2011 - 21:55 | 1175047 css1971
css1971's picture

~900,000,000,000 little bits of green paper.

~9,000,000,000,000 ones and zeros of credit.

~50,000,000,000,000 ones and zeros of debt.

 

Did I count my zeros right? There are so many of them. Of course more are always better.

 

Fri, 04/15/2011 - 16:38 | 1173997 onlooker
onlooker's picture

Inflation would push up the Social Security pay out, and Government wages. There can be NO inflation.

Fri, 04/15/2011 - 16:47 | 1174046 lincolnsteffens
lincolnsteffens's picture

No not enough inflation to even think about giving a raise to soc. sec. recipients. The TRAITORS  that promote or are an integral part of the US oligarchy need to be put out to dig ditches and pour concrete for ten years. After the wealth they stole is confiscated we can be nice and let them start out at entry level laborer wages.

Fri, 04/15/2011 - 16:37 | 1174009 lincolnsteffens
lincolnsteffens's picture

Did any one catch water boy Steve Leesman on CNBCrap this morning? Our friend Rick Santelli per usual gave Leesman the  tongue lashing he deserves. This time Mr. Leesman looked more uncomfortable than ever  trying to keep up his TV smile while pimping for the Fed. denying Fed policy has anything to do with "non core"  inflation.

 

 

Fri, 04/15/2011 - 16:47 | 1174054 Yen Cross
Yen Cross's picture

I caught the Mixed, ignore bad news and buy any news market move. As far as Leisman goes. I caught the smart guys staying risk off. Hence the usd/jpy tightening into the close. I caught the G20 (worthless) meetings. I caught the trade squaring. I caught the trade covering. Hence the volume, even lighter than the light volume issue.

Fri, 04/15/2011 - 16:44 | 1174035 Spastica Rex
Spastica Rex's picture

No fart noises.

:(

Fri, 04/15/2011 - 17:00 | 1174100 myTPisUSD
myTPisUSD's picture

"The price of some things are going down, like today, you can buy an Ipad2 for cheaper than an Ipad 1, and it is twice as powerful"

 

 

Let them eat Ipad

Fri, 04/15/2011 - 17:02 | 1174111 Sokhmate
Sokhmate's picture

there is a lot of sexual tension in this clip. Watch their body language.

Fri, 04/15/2011 - 17:10 | 1174156 nah
nah's picture

is there an alternative to current economic thinking

-yes its called common sence lol

.

cops should start video taping themselves reading zerohedge and post it on youtube so we can look at their faces... bet theres alot of hits in it for somebody

.

(Yeah, Ah-Ah-Ah-Ah-Ah-Ark)
Oo-ooh-ooh, hoo yeah, yeah
Yeah, yeah
Yeah-ah-ah
Yeah-ah-ah
Yeah-ah-ah
Yeah-ah-ah
Yeah, yeah, yeah

Seven a.m., waking up in the morning
Gotta be fresh, gotta go downstairs
Gotta have my bowl, gotta have cereal
Seein' everything, the time is goin'
Tickin' on and on, everybody's rushin'
Gotta get down to the bus stop
Gotta catch my bus, I see my friends (My friends)

Kickin' in the front seat
Sittin' in the back seat
Gotta make my mind up
Which seat can I take?

It's Friday, Friday
Gotta get down on Friday
Everybody's lookin' forward to the weekend, weekend
Friday, Friday
Gettin' down on Friday
Everybody's lookin' forward to the weekend

Partyin', partyin' (Yeah)
Partyin', partyin' (Yeah)
Fun, fun, fun, fun
Lookin' forward to the weekend

7:45, we're drivin' on the highway
Cruisin' so fast, I want time to fly
Fun, fun, think about fun
You know what it is
I got this, you got this
My friend is by my right, ay
I got this, you got this
Now you know it

Kickin' in the front seat
Sittin' in the back seat
Gotta make my mind up
Which seat can I take?

It's Friday, Friday
Gotta get down on Friday
Everybody's lookin' forward to the weekend, weekend
Friday, Friday
Gettin' down on Friday
Everybody's lookin' forward to the weekend

Partyin', partyin' (Yeah)
Partyin', partyin' (Yeah)
Fun, fun, fun, fun
Lookin' forward to the weekend

Yesterday was Thursday, Thursday
Today i-is Friday, Friday (Partyin')
We-we-we so excited
We so excited
We gonna have a ball today

Tomorrow is Saturday
And Sunday comes after ... wards
I don't want this weekend to end

R-B, Rebecca Black
So chillin' in the front seat (In the front seat)
In the back seat (In the back seat)
I'm drivin', cruisin' (Yeah, yeah)
Fast lanes, switchin' lanes
Wit' a car up on my side (Woo!)
(C'mon) Passin' by is a school bus in front of me
Makes tick tock, tick tock, wanna scream
Check my time, it's Friday, it's a weekend
We gonna have fun, c'mon, c'mon, y'all

It's Friday, Friday
Gotta get down on Friday
Everybody's lookin' forward to the weekend, weekend
Friday, Friday
Gettin' down on Friday
Everybody's lookin' forward to the weekend

Partyin', partyin' (Yeah)
Partyin', partyin' (Yeah)
Fun, fun, fun, fun
Lookin' forward to the weekend

It's Friday, Friday
Gotta get down on Friday
Everybody's lookin' forward to the weekend, weekend
Friday, Friday
Gettin' down on Friday
Everybody's lookin' forward to the weekend

Partyin', partyin' (Yeah)
Partyin', partyin' (Yeah)
Fun, fun, fun, fun
Lookin' forward to the weekend

Fri, 04/15/2011 - 17:17 | 1174188 Variance Doc
Variance Doc's picture

"So easy that no Ivy League Ph.D. is guaranteed to understand it."  Hey, I resemble that remark.

Fri, 04/15/2011 - 17:21 | 1174208 SparkyvonBellagio
SparkyvonBellagio's picture

so you admit to your teabagging?

Is one of your five names Pierpont?

Fri, 04/15/2011 - 17:25 | 1174221 Strategery
Strategery's picture

Only bankers, main stream media and Congress actually believe in quantitative easing. America must be educated! This video is excellent. Repeal the Federal Reserve Act! Do not raise the debt ceiling!! Stop this charade now.

Fri, 04/15/2011 - 17:41 | 1174299 AldousHuxley
AldousHuxley's picture

Inflation is good for anyone who earns using percentages: governments % of tax, banks % of interest of debt, churches 10% of your income.

Inflation is bad for anyone with fixed wages: workers, main street, etc.

Fed is not really increasing anything in value. You are just getting poorer, so that your labor is cheapened enough to be hired on world market.

You want a job you hate and money from that that doesn't buy much

or you want to be unemployed but everything is on sale?

 

Sat, 04/16/2011 - 14:03 | 1176113 Waterfallsparkles
Waterfallsparkles's picture

Higher Property Taxes.  Higher prices, higher sales tax. Higher Stock prices higher Capital Gain taxes when you sell.

The only way to win is to really cut down on your standard of living.  Stop spending money on anything not essential.  Buying used thru Thrift stores, ebay or garage sales.  Grow a  garden to reduce food costs.  Cook meals from scratch and do not buy any prepaired foods. Do not buy any food that is not on sale. Invest in a Wood Stove to cut down on the use of Oil for your furnace.

Cut your cell phone to a $10. month prepaid phone, eliminate cabel and get a tuner box for local broadcast, review and cut all car, home insurnace, cut down on driving, only make necessary trips.  You will spend less by not going to the store so frequently.  You will also not put as many miles on your car and will not have to replace it as often or need as much maintance or tires, etc.

By doing the above you accomplish two goals.  It is cheeper to live.  You will starve the Wall Street Bankers because all of the Companies that produce the products you would have bought will have lower profits and will affect their stock price.  Such as Insurance Companies, Cabel Companies, Phone Companies, Food Companies, Oil Companies, car companies, etc.

Fri, 04/15/2011 - 17:58 | 1174396 kevinearick
kevinearick's picture

Credit & Magnetic Effect

Credit from authority is welfare in return for conforming behavior, positive feedback, which sets up the black hole. All the people flipping and refinancing, getting money for no real work, naturally spoiled their children into a vegetative entertainment state, breeding them into empire zombies. Now that they are all addicted, the banks reverse the motor, and seize all the property, by lowering marginal income, inflating commodities, and depressing real estate. Inflation and deflation nets to 0.

When they reverse the engine, all the incorporated communities importing food and energy at massively subsidized prices get hyperinflation whiplash. Not only is authority ignorant of where credit needs to go, but it also naturally penalizes those not participating in the zombie economy, increasing the size and speed of the black hole casino. 

Adjust accordingly. Just like you cannot find God through authority, you cannot allow authority to channel credit through your personal life … neither a creditor nor borrower be. When you have surplus, give it to those being denied credit, a little at a time at first, and see if it finds its way back to you.

If you confine your “mistakes,” which become investments in intelligence, to your person, and otherwise help others, creating multiplier effects, you will naturally create an orbiting system around yourself. Most television evangelists, politicians, and CEOs do the opposite; they present themselves as personally virtuous and otherwise create large negative effects on others, who willingly walk into the ponzi casino, largely because they are specifically bred to seek something for nothing – the sinners going to church so they can re-energize to sin ever more the next week.

It’s all in the programming, but your hardware ramping makes the fusion/fission reactor possible. I am not giving you the blueprint to work off because I want you to have an equity stake rather than a short-term gain in your new governance models, which requires the thinking this planet needs, and will be a portfolio of independently operating magnetic centers with orbiting cylinders of delay mechanisms with increasing dimensions. 

Like 3 phase electricity, authority reverses by running the economy on cylinders, like the motor in your car. A depression/crash occurs when you cause simultaneous reversal, by extending and contracting cylinder cycle times. The extent depends upon how long you lock it up.

If you place a hundred skaters on a rink, they will soon begin skating in the same direction of their own volition, with a few exceptions, in each direction over time, depending upon individual magnetic effect. Design with troubleshooting in mind to create the largest possible middle class.

Fri, 04/15/2011 - 20:16 | 1174791 Yen Cross
Yen Cross's picture

(LET'S Trade)

Fri, 04/15/2011 - 20:20 | 1174802 penisouraus erecti
penisouraus erecti's picture

Another good explanation of something.

http://www.youtube.com/watch?v=K4vv7ymiMWI

 

 

Fri, 04/15/2011 - 20:30 | 1174816 Yen Cross
Yen Cross's picture

I want trades. Not theseus. Keep it financial!

Fri, 04/15/2011 - 21:12 | 1174916 IQ 145
IQ 145's picture

 Short the US Treasury Bond, contract on the CME, from 120-26 this afternoon.

Sat, 04/16/2011 - 00:12 | 1175321 Yen Cross
Yen Cross's picture

I'm a GJP/JPY trade. You are a very nice person. I will throw the currency trades to you. Always.. I hope it helps you. Thank you!

Fri, 04/15/2011 - 21:49 | 1175021 Nnthnt1
Nnthnt1's picture

Massive wealth transfer of the decade has begun...

What do Japanese Earthquakes & monetary cycles have in common?

http://bit.ly/hIAOIQ


Fri, 04/15/2011 - 22:47 | 1175167 dootyfree
dootyfree's picture

It would be funny if it were actually true.  QE is not printing money.  It is an asset swap.  Increased reserves dont not equal more private money.  There is no money multiplier at the present time, due to banks not lending.  M2 is growing at the same rate it was growing before QE, and growing much slower than other countries.  

 

If some one buy a stock, someone has to sell it.  There is no increase in assets.  It is a NET of 0.

Sat, 04/16/2011 - 06:22 | 1175509 tellsometruth
tellsometruth's picture

Good work keep it up

Sat, 04/16/2011 - 13:42 | 1176075 Waterfallsparkles
Waterfallsparkles's picture

When the Tarp was paid off was the Money used to reduce the National Debt?  If not why not.  How about all of the Warrents the Fed got from all of the Banks.  Was the Money from the sale of the Warrants used to pay down the National Debt?  If not why not?  What about all of the interest the Fed made from the Loans to the Banks?  Was the money from the loans used to reduce the National Debt?  If not why not.

Is this and the interest on this Money being used to Monitize the Debt?

Sat, 04/16/2011 - 15:03 | 1176265 Jack Sheet
Jack Sheet's picture

"Economics"  - what an absolute travesty and abortion in the guise of a supposedly academic "discipline" - utterly pukeworthy.

Mon, 04/18/2011 - 09:35 | 1179994 jbritely
jbritely's picture

As an economist you can take my comments as you will (I am embarrased by many in my profession):

I like this video but it states the mechanism by which inflation helps the rich incorrectly.  Inflation will help some rich who benefit directly from the money creation (some get the new money).  It also reduces the debt burden of other rich.  The stock market effect would be neutral on average. 

Fri, 07/15/2011 - 05:57 | 1458649 hama
hama's picture

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Fri, 07/15/2011 - 07:42 | 1458771 hama
hama's picture

compound annual inflation rate, the appropriate term to measure this year over year inflation measurement? This level of inflation will make it difficult for people to properly value the products they buy relative to the products value in silver.. A value buying guide might be a useful tool going forward.
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Sat, 07/16/2011 - 18:46 | 1462712 hama
hama's picture

The first thing in the morning ZH read makes me wonder? Is the confidence and faith in the Government and Media so destroyed that it can not be rebuilt? Not to say that I believe any one of the sons of bitches. Just sayin that some how some way, trust has to be re-invented.
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Wed, 08/17/2011 - 09:09 | 1568513 pama
pama's picture

Just sayin that some how some way, trust has to be re-invented.
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