One Minute Macro Update

Tyler Durden's picture

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Azannoth's picture

BB - Inflation ? What inflation ?

More Critical Thinking Wanted's picture

For the inflationary hawks – especially those abroad who are concerned with the US ‘exporting inflation’ – the Chairman offered that higher “visible” prices (notably for gas) were results of “very strong demand from fast-growing emerging market economies, coupled, in some cases, with constraints on supply.”  Inflation is apparently someone else’s problem.

Guys, you post this kind of innuendo (and outright accusations) with absolutely no proof offered that there's a link between QE2 and global (non-US) commodity price inflation.

Be a man and prove what you claim ... :-)

US demand is still on the low side and as described in this very article wages are not inflating up (wages are inflexible prices), so the US is probably a net inflation lowering force in the global supply & demand picture.

Countries driving up prices are those with high demand for sugar (India) high demand for iron ore or oil (China) and other commodities - and of course tight supplies due to bad weather and other supply side factors.

Check the WTI/Brent spread for heaven's sake - it's been featured on ZH prominently. Does 10 dollars cheaper US oil really tell you that "the US is driving up prices!"? :-)  Does it not tell you that Europe has stimulated its economy out of the recession more effectively than the US and has thus higher demand for North Sea oil? (coupled with the fact that Brent supplies are slowly but surely fading due to peak oil.)

So yes, this notion is ridiculous and unproven, and the facts are showing the opposite - so you are (probably unknowingly) playing the GOP's playbook to blame Obama and Bernanke for everything - but it gets repeated again and again by ZH which dilutes ZH's quality as a factual, fair source of useful information.

(And yes, I'm willing to check any actual hard data and theory that proves a causal link and I'm willing to change my opinion based on such data. All data is showing the opposite though - both current and historic data.)

It's fashionable here to bash Obama and Bernanke for absolutely everything, but could you please apply at least a little bit of critical thinking before you parrot yet another GOP talking point?


Grand Supercycle's picture

As mentioned numerous times, EURO downside and USD upside will keep recurring.

Please be careful as it should affect some commodity prices.