Mike Krieger Deconstructs Commodity Inflation: "You Ain't Seen Nothing Yet"

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/13/2011 - 14:04 | 873499 medicalstudent
medicalstudent's picture

Time traded for worthless paper.


truly shameful

Thu, 01/13/2011 - 17:11 | 874292 malusDiaz
malusDiaz's picture

You know whats worth more then paper?




It *USED* to be worth 1c... and 25c (silver quarter used to buy a gallon of gas) ~= 62.5 grams of copper, or 2.25 oz of copper.

3.50$ per gal on gas 

2.25 oz of copper ~= 3.50$.

16 oz per pound

24$ a pound... to keep up with gas inflation.

Fri, 01/14/2011 - 00:36 | 875343 AbbeBrel
AbbeBrel's picture

Humm what is this?  Doctor Copper has taken ill - down 3% today in FCX - what is the Rx?

Thu, 01/13/2011 - 14:05 | 873500 Bearster
Bearster's picture

If you want to see signs of inflation, look at the English language!

Krieger uses the same word for bankers as is used for people who deliberately plant shrapnel bombs on school buses to cause the maximum number of maimed and disfigured children.

Our financial system is a type of fascism, whereby profits are privatized by extracted from the population by force and fraud made possible only by government.  It is also a ponzi scheme as the tower of debt cannot expand forever.  And there are many cases of egregious fraud (like Abacus) and egregious hubris (like Blankfein).

But repeat after me this is *not* "terrorism".  It is a different kind of evil.

Thu, 01/13/2011 - 14:24 | 873551 Dr. Porkchop
Dr. Porkchop's picture

I agree. I said it in another thread: calling them Financial Terrorists would give them too much prestige, I prefer the term 'Worthless Cocksuckers'.

Thu, 01/13/2011 - 14:41 | 873606 1100-TACTICAL-12
1100-TACTICAL-12's picture

People are dying in food riots "nuff said"..

Thu, 01/13/2011 - 15:21 | 873733 RafterManFMJ
RafterManFMJ's picture

More food for the survivors, on a per capita basis. See how neatly these things work out?

Thu, 01/13/2011 - 15:14 | 873710 hbjork1
hbjork1's picture


Exaggurating to be heard has gotten to be cronic within our societal blogging discourse.  IMO, some of this comes from diliberate misreprentations by political players, in some cases, trying to represent that they know when they do not know.  If all fails, "fake your way through it."

IMO, TV has totally modified our society, democratizing but reducing ambition for intellectual rigor of the middle class.  We now know a lillle about a lot to things but with less rigor in specifics.  I have examples but it will make the note too long.

Thu, 01/13/2011 - 15:17 | 873721 AnAnonymous
AnAnonymous's picture

That is pretty weak. Terrorists enforce their views using terror.

It seems that several guys use multiple times the terror of the potentially collapsing Ponzi to enforce their views.

Not really an inflation of language.  More that terrorism is a shallow word, which too selective applications to be useful in any attempt to depict reality.

Thu, 01/13/2011 - 20:25 | 874892 Logans_Run
Logans_Run's picture

The "tanks in the streets" comment of Paulson? Fraud or an attempt at terrorism? Just asking.

Thu, 01/13/2011 - 15:25 | 873746 Misean
Misean's picture


Thu, 01/13/2011 - 19:18 | 874737 Rainman
Rainman's picture

...or in more detail, the GDX/ short SPX is a coin flip. Gotcha'.

Thu, 01/13/2011 - 15:44 | 873822 MrBoompi
MrBoompi's picture

But repeat after me this is *not* "terrorism".  It is a different kind of evil.


Pardon me if I believe Hank Paulson, Chris Dodd, etc. threatening martial law and financial armageddon, if we didn't pass TARP, is terrorism.


And I also believe the flash crash, which just happen to occur while Congress was debating financial regulations, was terrorism as well.


However, I do believe financial terrorism is a different kind of evil.



Thu, 01/13/2011 - 15:48 | 873846 imapopulistnow
imapopulistnow's picture

How can there be financial terrorism if words have no meaning?

Thu, 01/13/2011 - 18:46 | 874634 Stuck on Zero
Stuck on Zero's picture

To quote Bob Chapman: "The terrorists are in the banks, on Wall Street, in the City of London and running transnational conglomerates that are destroying our society and that of Europe"



Thu, 01/13/2011 - 14:06 | 873502 Oh regional Indian
Oh regional Indian's picture

Definitely a perfect storm scenario for commodities.

If you go on the need scale, food is going to skyrocket, steel is going to skyrocket (all those Indian's buying up Global steel with PE money are going to look really smart now), Oil will rocket...

Scene on the ground in India does not look good.



Thu, 01/13/2011 - 14:08 | 873506 Bearster
Bearster's picture

Demand for food is less elastic than anything else.  Second least elastic is energy.

Buy base metals at your own risk, boyz!

Thu, 01/13/2011 - 15:58 | 873892 DoChenRollingBearing
DoChenRollingBearing's picture

Paper food ETFs doing real good now:



Thu, 01/13/2011 - 14:30 | 873567 duo
duo's picture

I went down to the deli in the lobby of my office building.  Hadn't been there in 2 weeks.  All the prices were up 10-20%.  The $6 lunch I usually get is now $7 and change.

Thu, 01/13/2011 - 14:41 | 873603 Oh regional Indian
Oh regional Indian's picture


Scary if that is the trendline for the foreseeable future, eh?


Thu, 01/13/2011 - 14:56 | 873648 duo
duo's picture

When "value menu" items like $1 cheeseburgers and $79 cent tacos go away, that's when the riots begin.

Thu, 01/13/2011 - 15:20 | 873731 sawyer
sawyer's picture

$5 foot long at Subway...

Thu, 01/13/2011 - 17:48 | 874440 The Disappointed
The Disappointed's picture

... or the $2.00 lunch menu @ KFC.

mmm KFC

Thu, 01/13/2011 - 20:05 | 874835 DosZap
DosZap's picture

mmm KFC


$2.00 of Chicken skin, (no meat)DEEEEP Fried.

Thu, 01/13/2011 - 17:50 | 874449 ToddGak
ToddGak's picture

They can just keep shrinking the food sizes and keep the prices the same.  They've been doing that for a while but it's accelerating now.  Check the size of a jar of spaghetti sauce, they've gone from 32 oz to 28 to 26 to 24 or less now.

Thu, 01/13/2011 - 19:27 | 874757 UncleFester
UncleFester's picture

Not to mention you can 6sigma that 24oz down to 23.3oz without anyone looking.


Thu, 01/13/2011 - 20:18 | 874874 ColonelCooper
ColonelCooper's picture

Not trying to beat a dead horse on this thread, but if you make your own they never get smaller than 32 oz. 

-450 brand new Mason Jars w/lids - $300

- 1 Presto 20 pint pressure canner - $89

- 1 Presto Steam Bath water canner - $35

- 1 years worth of enough heirloom seeds to plant 1/2 acre of garden space - < $100

- Eating healthy ass shit and having enough put away to last a whole year - Priceless

Thu, 01/13/2011 - 14:11 | 873512 Racer
Racer's picture

Hunger is a very powerful enabler of mass action.

ZimBen and the Genocidal Inkjets are blind to that consequence of 'their' action

Thu, 01/13/2011 - 14:14 | 873519 Cognitive Dissonance
Cognitive Dissonance's picture

There is an old saying that I can't remember the source of but I heard often during the inflationary late 70's and early 80's.

America and the world is always just 3 square meals away from chaos.

Thu, 01/13/2011 - 14:30 | 873566 Dr. Porkchop
Dr. Porkchop's picture

The grocery store has a few days worth of food, and in a panic, that would get cleared out in the blink of an eye. It's a good time to stock up on things, before any major price shocks come. If they don't come, then you're just well stocked. If you buy long lasting food, you can just draw down on your supply.

I just wish I were in a position to have a vegetable garden right now. Unfortunately I'm renting and can't do it.

Thu, 01/13/2011 - 15:04 | 873675 duo
duo's picture

Bread and potatoes don't store very well. .

Thu, 01/13/2011 - 15:19 | 873728 Dr. Porkchop
Dr. Porkchop's picture

Rice and Chick peas as a basis. They form a very nutritious emergency diet and store very well.

Thu, 01/13/2011 - 16:06 | 873944 ColonelCooper
ColonelCooper's picture


There are cheaper places to get seeds and supplies, but this site has a lot of examples, and how to etc..

Excellent way to get fresh nutrition year round, and requires next to no space. 

Thu, 01/13/2011 - 19:18 | 874736 Escapeclaws
Escapeclaws's picture

Thanx for that, CC, and a tip of the Hatlo hat.

Thu, 01/13/2011 - 15:33 | 873778 velobabe
velobabe's picture


the word of the day, freezer. well as long as we have electricity, i guess. i make a bunch of twice baked potatoes and freeze them. almost everything freezes well.

freeze, bitch†

Thu, 01/13/2011 - 16:22 | 874027 ColonelCooper
ColonelCooper's picture

We had all better take a lesson from our Grandparents and learn to stretch our food.  We eat too much and we waste even more.   

Frugality Bitchez.  You'd better learn it.

Thu, 01/13/2011 - 16:02 | 873920 hbjork1
hbjork1's picture

For bread, seal the loaf with Al foil and freeze.

For Potato I would try the same thing because the only problem should be loss of moisture. 

Loss of moisture is the big problem.



Thu, 01/13/2011 - 16:08 | 873951 duo
duo's picture

I've frozen bread in the past.  It dried out but was still edible.  I guess dried out potatoes would cook faster.

Thu, 01/13/2011 - 19:30 | 874766 UncleFester
UncleFester's picture

Dried bread = french toast.  Chickens bitches!



Thu, 01/13/2011 - 16:27 | 874052 ColonelCooper
ColonelCooper's picture

If you have room for a large garbage can, and a semi-cool place to put it, fill it with sand to store spuds, carrots, and onions.  If you live in the city, I would think you could buy sandbox sand at a Menards/Lowes/etc..

Also, consider doing your own canning.  Jars stack well, don't require fridgeration, and you tend to actually eat your leftovers rather than toss them.

Thu, 01/13/2011 - 17:10 | 874291 Things that go bump
Things that go bump's picture

Canning most things beyond pickles and jam requires a pressure canner.  This would be a good investment.  I got mine at Fleet Farm, where you can also acquire things like hand grain grinders and meat grinders, dehydrators, and good American-made cast iron cookware.  Get a good book on canning while you are at it, because pressure canning can be a dangerous undertaking if you don't know what you are doing.  With good technique and the right equipment, even meat can be canned at home.  I've actually canned butter, which doesn't require a pressure canner, and its not bad.  Lay in some jars and new lids.

Thu, 01/13/2011 - 17:52 | 874457 ColonelCooper
ColonelCooper's picture

I'm thinking about trying some of these this year.  Anybody have any experience with them?  I want to try them before I go all out, last year I put up a little over 400 jars; at about 4 times the cost they had better work.


As far as reference books, I highly recommend "The Joy of Pickling", and "Balls Complete Book of Home Preserving".  If you are going to buy a pressure canner, I would recommend buying a weighted one, rather than one with a gauge.  The weights never need to be calibrated and reduce the odds of canning at too low a pressure and shitting your pants for a month.

Canned venison on Ritz crackers is an outright delicacy where I come from.  Any time I have the pressure canner out, I brown up 5 pounds or so of ground beef.  It's the handiest shit ever when you need to make an instant supper.  Whenever I make soup I make a shitload, and start canning it right after supper.  On the nights I don't feel like cooking, I just tell the kids to have soup.  Right now, I have five or six different kinds on the shelf.  I don't even have to feel like shit for sitting around drinking bourbon while I make the kids feed themselves. ;)



Thu, 01/13/2011 - 18:28 | 874582 velobabe
velobabe's picture

just pickle your balls, colon. put them in a plastic freezer bag. use a straw and suck out all the air, really a B I G  o l d SUCK, boom, tight sealed pickle balls, freeze and enjoy at a later time†

Thu, 01/13/2011 - 18:59 | 874679 Things that go bump
Things that go bump's picture

I've never heard of those.  Thanks for the link.  If they really are reusable they would be well worth the investment.

Thu, 01/13/2011 - 19:27 | 874756 irishgurl4
irishgurl4's picture

I have a dehydrator that I've been running non-stop lately.  Best way to preserve fruits, veggies, and make some tasty jerky.  I've also got a bunch of mason jars and a vacuum sealer with the lid attachment that I use to keep things fresh.  I only have so much freezer space and if the electricity goes ...

Thu, 01/13/2011 - 16:39 | 874119 The_Euro_Sucks
The_Euro_Sucks's picture

Buy a bread baking machine and kilo's of flour. Can store that for around a year. Get creative or face a hard time

Thu, 01/13/2011 - 15:20 | 873732 AnAnonymous
AnAnonymous's picture

Dont worry, nobody will starve in the US (save the usual suspects)

The US is at starving the world to sweeten  trade negociations. As such, the US needs an army of gluttons to put pressure.

US citizens will be fed by their government. It would be counterproductive to act otherwise.

Thu, 01/13/2011 - 18:04 | 874504 johnnynaps
johnnynaps's picture

High Pressure Sodium or Metal Halide lights......look into them. I would recommend growing something that barters well as opposed to veggies though!

Thu, 01/13/2011 - 15:43 | 873816 RobD
RobD's picture

I've tested this, I get real cranky if I go more the 16 hours without eating. It won't hurt you to do it and some believe fasting is good for you as it simulates what our hunter gatherer ancestors experienced as we evolved. Give it a try sometime.

Thu, 01/13/2011 - 16:17 | 873862 hedgeless_horseman
hedgeless_horseman's picture


It is a good thing in moderation.  One of the most memorable things I have done is fast for a week.  It is interesting to have have the devil on your ass, and I mean on your ass. 

Utterly amazing to discover how much power over your mind food has.

Do NOT follow this link or you will be banned from the site!