This page has been archived and commenting is disabled.
Because one chart is worth a thousand Fed Chairman press conferences...
Courtesy of Sean Corrigan of Diapason
- advertisements -
Contact Information:
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Suggested Reading:
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
It would be very wise of you to study our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. Here's our Cookie Policy.
That's ok. We were looking for droids anyway.
Charts looks like that of a harmonic instability heading towards destruction. Tacoma Narrow Bridge analogy...
My sentiments exactly - along with:
Lookout ! She's gonna blow !
Let's get outta here !
But how...the door's bolted from the outside !
Yup.
We're fucked.
God damned economists should be required to take engineering maths.
Given the lack of jobs and wage growth in the US, this would only be inflation if say some banks with a bunch of toxic crap put that crap to the Fed in exchange for treasuries which they then sold to joe idiot so that they could buy a bunch of commodity/equity positions in which they manipulated the market higher at their whim. But that would never happen.
The frequency of the Thomas Jefferson inflation/deflation cycles has merely increased.
Oscillation is the new "up". Oscillation is the new "down".
How many ways can I say this?
BTFDs!!!
It's an awesome day to buy silver!
General Grievous: Time to abandon ship.
My expectations are well anchored.
Input, please? Opinions on the better bet for 6 month timeframe... short financials or short long bond? (Other short/long considerations aside.)
reflation. in slewienomics, this is called the green stamp oscillator. by oster.
you are getting sleeeeepy. you can hear my voiiiice. this is under controoool.
PMs = no counterparties. got sleep?
clearly just a transitory affect that has nothing to do with the benign asset swap activities undertaken to save the universe, surely a worthy cause you'll agree....
Yay! That looks like the feedback loop is getting stronger.
Force it some more Ben! Go on, You Know It Makes Sense!
I love exponentials they make such stable systems.
"The answer you entered for the CAPTCHA was not correct."
Yes it was. Your captcha can't add up.
http://consumerist.com/2009/12/9-shrink-rayed-products-to-mourn.html
That's just lovely! (British Accent)
It's important to understand the difference between monetary inflation / deflation and prices rising / falling.
If QE stops we won't see monetary deflation (shrinking the money supply). Stopping QE would stop further expansion of the money supply, but it wouldn't shrink what's already there.
If QE stops we'll see falling prices on treasury securities, MBS, and similar financial securities, because there's no more flow of cheap / free money from the Fed to buy them. That's not deflation. It's falling prices. And its due to collapse of demand, not shrinking money supply.
Stocks will level off because there's no more flow of cheap / free money from the Fed to pump stock prices higher.
If stock prices fall it would be from collapse of confidence, not shrinking money supply.
An extreme example of the difference between monetary inflation / deflation and prices rising / falling is the housing market. During QE we see the money supply increasing (inflation) and home prices falling from collapse of demand exceeding the rate of money supply expansion.
If the money supply is increasing 10% per year (10% inflation) but demand for homes is collapsing 30% per year, we would see home prices falling 20% per year more or less.