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Premarket Summary: Inflationary Hysteria
One word (well technically two) can describe what is going on in the electronic pre-market arena right now: inflationary hysteria. Gold is at a new record, wheat is surging, corn is at highest since 2008, crude at a new 30 month high, silver is at $41.10 - a new fresh post Hunt high, beans surging, etc, etc, etc. Essentially everything is bid, following news first reported on Zero Hedge that PIMCO is betting the farm that either inflation is about to go parabolic and force bondholders to dump everything, or that the Fed will have no choice but to pursue another round of QE, sending gold to $2,000 and unleashing the Weimar endgame.
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i was wonderin' when you'd make an appearance. "one to bind them."
Reality is a bitch, isn't it?
Amen and AMEN!
how many paperweights does karl douchinger have on his desk, at his house, in sunny niceville?
For openly and flagrantly insulting the ForumFuhrer,
I BAN YOU!!!
spaulding has left the building.......
Spaulding has left the planet.
He is now on some otherworldly plane of the 17th dimension, where he preaches daily the imminent collapse of Dilithium Crystal prices.
i prefer to have my ears rubbed myself.
Silver at 41.28.
*Rolls over, lights up a smoke, and asks Blythe if it was good for her too.
mathman can't talk now, he is out in the front yard, pulling chickweed....
Chickweed is very high in vit c and very good for you. I hope you are eating it or giving it to some deserving herbivore. Chicks, horses, and the zoo camel just love that stuff.
what about chicks and weed? can never eat and smoke enough!
I'm going off the rails on a crazy train!!
dude
if part of the tptb responsible for keeping a lid on gold and silver i think my plan would be to step aside and let the rally exhaust itself. it seems fruitless at this point to try to short the steamroller. maybe somebody else has a better approach/thought/idea?
Watch for a change in fed language timed for an overbought exhausted condition in the inflation trade long side. I bet ben hopes to wait as long as possible but at least a month after the end of qe2
you might be right. he (bernanke) ought to tread carefully though. washington dc is looking for a scapegoat for a failed system. he might fit the bill.
* Invests in Guillotines
if bruce krastring's synopsis today of a federal bond default is correct then you are right.
If he can completely fuck over the markets for a short time, we'll see the dip. And I'll be BTFD like there is no tomorrow...because the probably won't be another tomorrow after Benny and the Inkjets get done with the USD.
Still speculative excess until I see a five percent core.
Ben will tighten when necessary or unavoidable.
The first change in " foreseeable future" and "extended period" language will bring a lot of pain to people long the inflation trade.
Just as a wild ass guess, I'd say that opportunity was missed a couple of years ago. Once you go down the money printing road, there is NO return.
Read the Paul Tustain post here on Zero Hedge a couple of days ago. He explains the mechanism by which "a little inflation" becomes a lot of inflation. Playing with inflation is a lot like playing with a grass fire; the normal situation for it is, "out of control"; anything else is "you've been lucky, lately". Heavy weight international investors are sliding constantly down the yield curve to shorter and shorter term paper, which ultimately is "the same as cash"; this is one of two "spigots of money" that people don't understand. Stagflation, the word, was invented to describe a real situation that was supposed to be "impossible" by classical economists. I wish I was making this up. Stagflation is entirely possible. We have had every signal available to mankind posted already to the effect that inflation is here and now. Well, we haven't had a giant full color bill-board in Washington D.C., but aside from that. Inflation has a nasty tendency to accellerate; the measures necessary to bring it under control tend to be draconian and un-palatable; in the present intellectual and moral climate, impossible. In my opinion, of course.
Stagflation is impossible in theory but we are living it now. Even I don't get it sometimes. I live in a relatively prosperous state and I still have my friends and neighbors getting laid off and taking pay cuts as I see prices rising. It's a turd sandwich. At least in classic inflation we have rising pay with rising prices. We get the worst of both right now. I read that same article and it was great. I love when someone can make sense of things and then project the future. That's the test of true knowledge.
Even I don't get it sometimes.
Stagflation is easy. It's Fed money printing (and Wall Street speculation) forcing prcies up while the real economy languishes in recession or depression.
Exactly!
Actually the Blues Brothers summed it up best: "it's a wish sandwich." Where you have two slices of bread and you WISH you had some meat. I wouldn't eat a "turd sandwich" myself.
It's on the government-Fed menu for all of us.
Personally, I think a market crash will take care of these inflationary issues. And EVERYONE is long the inflation trade. When everyone agrees......
The American consumers have been reduced to state of domestic pets by now. All they need is iPads and $2 wine.
I could live quite happily with an ipad and two dollar wine. American ingenuity and productivity at its finest.
Pussy is free. What else do you really need? Rice and beans are also cheap. We have it great here compared to...um....80 percent of the world?
Enjoy while you can. IMHO the *good* life ain't last long. Free pussy? You either pay as you go or you pay with your lifetime. It ain't free.
Well now that i think about it maybe its not so free after all.
great. now we all know you're a liar. what is free again?
Troll you are too naieve. Men pay hookers for what reason? So that they will leave!
You pay now or pay forever... there are no free lunches or hookers or anything else... Someone is always paying... Go to a 'free' city park and have a picnic but taxpayers are paying for that park...
Ahhhh, Johnny Bravo, you are back again!!
Good to see you!
May all your new predictions turn out the same as your original ones!
Hasta la vista!
Personally, I think a market crash will take care of these inflationary issues. And EVERYONE is long the inflation trade.
Incorrect. The vast majority of the West's managed capital remains stored in government bonds, property, and equities. Seriously, do yourself a favor and really take a look at the actual amounts. Not the sentiment. Agreed, the sentiment is very favorable now towards the inflation trade but even this is recent and could go a long way. You can barely find the amount of global capital devoted to precious metals, for example, on a chart. The world remains stuck deeply in normalcy bias, and that's how it's positioned.
GG
Hysteria depends on where you live these days. Though I would be hysterically buying gold if I were in Asia, Africa or perhaps some western european countries. I don't think Americans in general are hysterically concerned, yet.
(not to say this particular American has been complacent)
Most are clueless. Even my family thinks I'm a bit of nut on this. However, the silver I graciously bought all of them for Christmas is up about 25% now.
I also think most (not all) Americans have been carefully conditioned by government schools, liberal press, and politicians to believe the government is their friend and will save them.
You mean the neo-liberal-neo-con-banker-media press?
And don't forget: all those brown people around the world who want to rape your lilly white daughters are kept at bay by your freindly government-military-industrial complex.
And I say to myself, what a wonderful world.
Never mind that shit... is the price of garlic going up ?
Yes. Remember that the strength of garlic increases the longer you don't start cooking it after smashing it. You don't need to buy as much with a little discipline.
I eat it raw and uncooked. At least three cloves daily.
The mem-saab is a saint to put up with me.
James, is that you?
++good for circulation as well.
Can I get a shout out for ginger?
Just had some with some of the last sushi I'll probably eat for a while.
Turns our good old maple syrup is a superfood:
http://www.lewrockwell.com/spl3/maple-syrup-superfood.html
Get some saplings for your survival cabin/bunker entrance cover. ;-)
I stare at my canned salmon/tuna everyday...."Ah, someday, I will eat you..." Maple syrup? I do make a mean french toast. Cayenne instead of cinnamon. Pretty sure cayenne is an anti-biotic.
nope. pro-biotic. not anti-biotic.
http://www.youtube.com/watch?v=ld1azzZrfGQ
No that isnt james, just a follower.
The real memsaheeb was killed after being thrown from a horse. If i remember correctly.
memsahib died of cancer and chose jwr new wife before she died
I'll bet Vampires vaporize if they come within 66.6 feet from you.
I don't know if I would call it hysteria. Perhaps it is more of a natural sequence of events after CB's print tons of money and gov't pols think that reducing 38bil of a 1.6T debtt is a success.
Bingo! Confidence has been officially "Shanked"! Many readers have yet to witness hysteria.
But why would the banks with the most gold reserves try to print their fiat the way of the dinosaur? Wait a minute!
This is a good question...
Yeah buddy, financial tectonic plates are floating on a sea of fiat, when they collide and buckle, something has to give - paperquakes coming to your neighborhood soon...
This is interesting, look at the forclosed hourse at 2227 xxxxxx ave, san jose, ca. Auction was held in Oct 21, 2010, buyer was Wells Fargo Bank at $310,000 (fair market value then and now). But original owner still lived there in Oct and moved out two weeks ago, so maybe he paid rent since Oct 2010. The weired thing is that there was no any 'FOR SALE' or 'REO' sign raised, and buyer was Wells Fargo Bank, everything was done in secret. If banks can buy real estates, no wonder we have 'green shot'.
One thing for sure from now on is that interest rates long and short will rise and this parabolic spike in commodity prices will collapse against a basket of major currencies. The currencies that pay a real rate of interest will survive, the ones that don't will be punished with huge interest rates costs, killing their domestic economies until they get religion.
Seen this before in the late 70s. We are about to do a massive second dip. Guess what happens to silver and gold prices when you actually have to spend them to live.
As for the dollar, we get out of the war business and invest at home we will be fine, but that is a political decision that I hope is about to be forced on our leaders.
This budget deal was 78 billion cuts on people at home and a 28 billion increase in the defense budget, i.e. people starve here so we can murder Afganis and Libyans. Only stupid sap suckers would let their politicians do that to them, but then SSS has defined American voters for a long time. Lets hope the ongoing collapse of our economy which this budget deal will exacerabate wakes enough of us up in time.
You live and burn the worthless collapsed fiat paper in the dumpster beside the bank to keep warm.
1+.
This is a commodity suckers rally.
This is a web bot short extravanganza!
Just took some delivery of my silver. Tired of all the ignorant fucktards who don't get it.
The stock market not going up is also an indication of hyperinflation, indeed, in the Weimar Republic, the value of the Daimler company dropped to around the price of 300 finished cars.
Let me guess....a huge gap up for the REITs tomorrow.
I'm slathering my brown eye now for a in-yo-face ramp job at 9:30.
Man we tell you guys to not to compare the POG in US asswipes - yet you do. The name of the game is ounces people! Not what you paid for them. In 1 year you'll ask yourself why the fuck you cared that gold was 1500 asswipes. It'll be 50000 asswipes on it's way to a 1000000000000000000000 asswipes.
You seem to believe that all country asswipes are relevant in this discussion.
They are not
lol!!! speak the honest truth and get junked! good for you!!!
And another 60 Wiener Phillies to start the week. Indeed BWYC is a better strategy, and if you fail this week, you're still rewarded next month. I can breath again !
Suggest American Gold Exchange, Austin TX. They are also recommened by one of the Stansberry Associates, Dr. Steve Sjuggerud. Good service from AGE.
When anyone screams hyperinflation...they never mention how housing keeps collapsing and job market corrodes. In hyperinflation, housing should be inflating...but it's not and the hyperinflationists can't explain why.
Here is a possible reason: DEFLATION!
In a deflationary environment, housing collapses, credit disappears (companies don't want to part with their dollars and hire, banks too, they won't lend; etc).
Gold, Oild and other commodities will collapse just like 2008....it's a matter of time.
We can have both, most believe in one or the other, Orthodoxy prevents people from thinking about a fucking black swan double whammy.
Your caution is duly noted and should be considered by all cause I don't fucking care who you are. No one knows the future except for the bankers.
Man don't you get it. You are allready sitting with your head in the black swan's big black arse. Don't be too carefull, just get out of there is my advice.
You are too dense for your own good. Real estate can't be exported. It collapsed during most of the Weimar hyperinflation. Anyone who owned real estate got smushed. Anyone who owned gold or silver become nobility. Anyone who traded gold or silver for real estate near the lows became kings.
I find your lack of common sense...disturbing.
And, you can't eat your house.
tmosley
#1156382
"Anyone who owned gold or silver become nobility"
delusions of grandeur my friend.
No, you just have delusions.
http://3.bp.blogspot.com/_vcA5QunW1og/S7THDgsCiWI/AAAAAAAAL9c/SAIb4OTLJ9...
This is the past we are talking about here. You can't deny cold hard fact, as much as you might like to.
But you gotta love the boobs
Plenty of boobs around here. Especially when silver is off 0.5%.
rotflmao
lol!!! well done tmo_!!! and, bazooka's only garnered 14 junks for what he said, there too! yay!!!
no shit. "dem be brains movin'." the government confiscated everything "as a result of Weimar." Leaving aside "the millions annihilated" of course.
it's BIFLATION and until there is a sound monetary system all the funny money will seek gold and silver, it's a matter of a long time, the rest of the commodities might bubble burst soon, agreed.
BINGO!!! for the Consititutional bimetalism/biflation there strnglv! keep up the good breathin, doc-tor!
Yeah, and Elvis is going to return on the back of a unicorn, too.
Let's look at the monetary history and final outcomes of chronically overspending governments with massive and unsustainable debts, shall we?
Currency collapse and/or hyperinflation: 100s
Deflationary collapse and appreciating fiat currency: 0
So why do you think that "this time is different"?
Was housing going up in value in Zimbabwe? How about the job market there? Salaries were rather flat, to say the least there as well. Go talk to them about deflation.
Deflation has been going on for many years vs real money: gold. It all makes sense that way. And the amount of Bernkanfettie FRNs or other inflated fiats it takes to buy gold, silver or anything else with a nonlocal market, will continue the trend.
BINGO!!! austrin econ guy sez DJA is overpriced, too risky. asked at what level of the Dow he would consider buying, answers: when you can buy the Dow for an ounce of gold, i'll buy the Dow. until then, screw it! no gold for stocks! true story!
We were witness to that after the first crash and you are correct. The second crash will bring even higher gold and silver prices as people will no longer trust government paper. The second crash has begun already. People are fleeing to Gold and Silver as can be seen now on the market. FDR attempted to keep the US Dollar afloat by confiscating gold. He managed to steal 1% from bank safe deposit boxes and forced Gold into a thriving black market. Google the history of the economic depression of 1929 and you'll see our future.
See the comments - that's why one must be very careful. The hyper boat is listing hard to stupid. Time to move to the middle and wait.
Your all very sure of yourselves which assures me that it ain't that simple. Since most of you only heard of gold last week and have zero it doubly assures me that this is so.
The "so" is that there isn't one answer yet, just a bunch of guesses. Most of you didn'teven see 2008 coming and had your heads handed to you as well as your investments wiped out. If it weren't for the Bernank asswipe explosion - you'd be in tents on the outskirts of Dallas.
Be careful is my point - there is no clear answer here.
i'm not that smart either. I thought the crash would come in 05-06. live and learn
Only idiots put their faith in the paper notes of a bankrupt State.
Deflationists would have us believe that PAPER dollars and infinitely conjurable eDollars will become more worthful over time. Horseshit. This has never happened. Perhaps over a short term, but look at Japan.
Nuke disaster, run on yen-funded assets...wtf did they JUST DO? They printed in massive quantities-look at the yen POG if you don't believe me
umm Trav my Japanese concubines got cheaper in Yen every year.
"Splain that one"
Declining standards?
Easy to explain.
They got cheaper every year...because they got freakin older every year.
He says with a bag of rubles slung over his shoulder....
http://en.wikipedia.org/wiki/Gold_reserve
as of dec 2010, japan has on hand 765 tons of radioactive gold.
One of the nicest things about gold, is it has no isotopes with half lives over half a year.
Au-176 1.3 sec alpha, positron emission, electron capture
Au-177 1.3 sec alpha
Au-178 2.6 sec alpha
Au-179 7.5 sec alpha
Au-180 8.1 sec electron capture
Au-181 11.4 sec electron capture
Au-182 21 sec positron emission, electron capture
Au-183 42 sec electron capture
Au-185 4.3 min positron emission, electron capture
Au-185m 6.8 min positron emission, electron capture, isometric tra
Au-186 10.7 min positron emission, electron capture
Au-186m 2 min positron emission, electron capture
Au-187 8.2 min positron emission, electron capture
Au-188 8.8 min positron emission, electron capture
Au-189 28.7 min positron emission, electron capture
Au-189m 4.6 min positron emission, electron capture
Au-190 43 min positron emission, electron capture
Au-191 3.2 hr electron capture
Au-191m 900 ms isomeric transition
Au-192 5.0 hr positron emission, electron capture
Au-193 17.6 hr electron capture
Au-193m 3.9 sec isomeric transition
Au-194 39.5 hr positron emission, electron capture
Au-195 186 day electron capture
Au-195m 30.5 sec isomeric transition
Au-196 6.18 day electron capture
Au-196m1 8.1 sec isomeric transition
Au-196m2 9.7 hr isomeric transition
Au-197 100%
Au-197m 7.8 sec isomeric transition
Au-198 2.7 day beta emission
Au-198m 2.3 day beta emission
Au-199 3.14 day beta emission
Au-200 48.4 min beta emission
Au-200m 18.7 hr beta emission
Au-201 26 min beta emission
Au-202 28 sec beta emission
Au-203 53 sec beta emission
Au-204 40 sec beta emission
If one must buy the dip, one must sell the spike. Banksters got one more spike to sell, no? (mr. cranky)
many people, who can, take FRNs out of one pocket and put PMs in the other. on a regular basis, this results in increased ounces of gold and silver. the end. please troll somewhere else! pleeease!!!
velocity of money bitchez
Exactly. When gold collapsed in price during the double dip of the great depression it was funny because it totally didn't happen. The only thing that dropped gold was the people willing to give it up and the miners willing to be shoved so far up bankers asses they made typhoid mary look like hannah heygiene.
I read the deflationary arguments and they are good. However, I still lean toward long term inflation. The reason you can have both is that 4million homes were built with no residents based on speculation and a never ending rosey property scenario. So, that deflation is specific to housing and the financing of it. The Fed and others have replaced the bank money. The inflation will occur more in short term stuff you need to survive such as fuel and food as the government drives down our currency.
However, your point is good and frankly its hard to tell what will happen. Our government can crash the economy and that is deflationary as well.
money is pouring through the fed stargate set in the middle of the favored banks but never makes it off the trading floor into an actual loan portfolio...
Your gov propped up the banks when they fell and couldnt get up, and now - with 0% funbux - they front run every non-discretionary item you need to purchase in order to live.
Exactly
When anyone screams hyperinflation...they never mention how housing keeps collapsing and job market corrodes.
Your avatar is appropriate. What a clown.
Inflation has to do with the money supply, not prices. The money supply can be growing (inflation) while people are losing jobs and housing prices are collapsing from lack of demand.
yep! and, while jobs are being lost and housing prices remain weak and continue to lose ground in many markets, oil, gasolene, food, clothing, and rents start to go fukin ape-shit higher.
see, old geezer, the fact that inflation is always and everywhere a monetary phenomenon does not refute or void the fact that such wanton increase of fiat invariably leads to higher prices, in general, especially where the poor are concerned, relatively speaking.
you're obviously just as smart as any parrot i've ever met, so, perhaps you've also learned: "inflation is an invisible tax on all wealth." polly wanna crack-er? the reason this is true is b/c the buying power of the dollar goes into the shitter via inflation. if you can't see what dis hab sumpin ta do bout pwices, i have a bridge i would like you to look at. cheap, too!
they've printed so damned many fiat dollars that they have lost 80% of their value against gold and even more against silver. unhhh...in the last decade or so...
if ya really think that inflation doesn't have to with prices, please at least realize that the fukin correlation here, is pretty astonomically high to disregard, for pete's sake, i don't really care how anal you are, or whether you might think i'm a fukin clown too, as you project yer way along the zH string,...asshole...
they've printed so damned many fiat dollars that they have lost 80% of their value ...
97% compared to 1913 purchasing power.
... or is it 98% now?
or whether you might think i'm a fukin clown too, as you project yer way along the zH string,...asshole...
I'd rather be an asshole any day than a clueless moron like you.
There are a few parts to inflation. True inflation is always a monetary issue. It's not simply prices going up. Prices change all the time on the good old supply-demand and price-demand curves. The first part of inflation is an ever increasing amount of fiat/paper currency compared to the goods and services available. However, it has to get into circulation, as well, i.e, the Fed may print the money but it won't do anything if it is sitting in a warehouse or bank reserve. Credit needs to expand or the fiat needs to be distributed. I see that as part of the problem here. There is some hard currency printing. I think there are a lot of simple computer entries with no real currency behind them, too. Plus, there is still a deflationary trend with high unemployment and the difficulty of getting loans and credit. So, there is a sort of impasse right now. I believe that will clear and inflation will eventually have it's way...which is the desired or necessary result to fund Congress. Geezer is actually on the right track and so are you, so no need to bite your friends as you manically type.
Housing requires a loan (not generally available) and it requires some proximity to the physical location. Gold and Silver are what international investors are used to and what they prefer over FRNs. In When Money Dies (the Weimar story) everything real went up eventually. In 1922 the unions and miners were able to demand wages which kept up with inflation. Dr. Rudy Havenstein, chairman of the Reichsbank dutifully printed enough so "people would have enough to spend". He never made the connection between the increased supply and inflation. If this drags out we will finally see housing rally. We will all be billionaires (those who still have 'stuff' and PMs) when the worst happens. I have only been in PMs for 6 mos. and only 'awake' for a year. I thank Aftershock authors everyday. I'd still be in a mutual fund if it were not for them. ...there are many ways to enlightenment, that was my "path" ( I am not new age just using the lingo). Last thought...there may not be a dip, even in May, we may not last til May or June, I'm trying to get family and friends tuned in...I'm learning the hard way though, some just get angry and pissed off at my craziness...they just don't want to know...
this fuckwad is just that
Been a while since I saw real spam on this site. I guess it's time to upgrade the captcha.
I saw somewhere auto-delete is 50 junks; is that right? I vote for 40
I vote for "auto-hide" rather than disjointed threads.
I thought Tyler got rid of that long ago, space monkey.
We just accept it. Even if Tyler "...felt like destroying something beautful."
Second.
Also, an option that allows one user to auto-hide posts and/or threads of comments originating from a given user. It would cut down on the trolling while not silencing anyone.
unhhh,...i slewie thinks if you guys have a problem w/ free speech for all and would prefer facebook, don't let me hold you here, please! ok, maybe that's not totally fair here to you folks.
look, i can read what was written as well as you can, and i certainly don't begrudge you the absolute right to just pound it. fair is fair, and that's fair!
i guess i'm uncomfortable with the idea of "let's change Fight Club rules or format b/c i don't like something or, more especially, somebody." i can understand the impulse, but i don't like the general idea of the ad hominem + "rule change" in terms of style, ok?
personal values. mine.
Free speech doesn't mean you have to listen to every asshole rant.
I'm watching the silver chart right now.
People are just buying every dip. I feel little edged but what the heck I'm long:)
Oh you will get your other end of the parabolic curve of the inclined baseline as the mortal masters make it so.
Just wondering. If JPM et al can't effectively push down PMs with the PM euphoria/inflation trade happening, why wouldn't they just slap down the equities market a few notches to give the FRN $ a boost, perhaps scaring some into selling their PM long trades? I'm no expert, but wouldn't that just be a matter of withholding some of their free capital for a few days? Thanks for your help, b-w (That assumes they'd want to protect the $, but seems to me they have some pretty hefty $ values to protect, eh? after the last couple of years.)
Just pure speculation here, but it might be caution vis a vis the sheep herd. You know like a loud noise. As long as Chris Mathews can announce Dow=green most every evening the herd will snooze. A reversal might be hard to stop if it sends even some of the masses bolting (say out of their 401ks etc). Critical mass and all that.
"Suck it up America! Suck it up!" Barack turned behind him. "What should I say next?"
"Just read from the teleprompter..."
Obama turned righteosulsy, with his head strong on his neck. He swiveled it from left to right. "Look, we all knew we had to tuck our guts in. We all knew this day would come. We are strong, we are bold, and we will resolve these issues."
"Yes we can!" A blind man said from the back of the auditorium.
Barack was satisfied with himself, and stepped away from the podium. "I need some Cherry Garcia." He said to his underscore.
"Yes sir."
"Tell Michelle we will be flying to whatever vaca spot she wants next, and pop a bottle of bubbly while you are at it." He made his way to the dressing room.
"Where the hell are my skittles?" He always asked for a bowl of skittles to be set aside his mirror. "Even Britney gets what she wants." He lamented. He was getting frustrated being President. It seemed like no one respected him anymore.
Good one!
Dollar gettin raped again..
Dollar day planner.
april 11th - get raped
april 12th - get raped again
april 13th - more raping
april 14th - Not again. Yes it's rape time again.
april 15th - What do we do today? Besides rape. Sorry rape is all that's left to do.
april 18th - Why are tax revenues so low? Because we raped the dollar and we can only tax profits and there's no profits. Why did we rape the dollar? So all the companies we think we need to secure power lied out thier ass about profits so we had to shovel them free money. Now all we have is a bunch of billionaire asswipes that don't do anything but cruise 500 dollar an hour hookers on thier ipads.
A GSR of 35.70 be intolerable. Parity of the precious and it's lessor cousin gold have been in the stars for many moon cycles and polar shifts.
wowser! once ya get those polar shifts in there, the moon cycles just fly by, doncha think? slow process, eh? feel free to just fukin kill yerself if it gets any worse, ok? suicide is painless, we all know that from M.A.S.H.
personally, i've never had the joy of feeling that the level of the gold/silver price ratio was intolerable. you must be very special! i'm surprised you're still with us. what was it like @ 70? it was 64 when? less than a year ago? maybe, huh? of course, once you clearly see that the ratio must go to 1:1, what the hell? let's go!!!
lol!! ++++!!!
One word can describe what is going on...
One phrase can also help understand what's going on:
The financialization of commodities.
Or: A currency exchange is taking place, hidden in plain sight.
Interesting. Paper swapped for commodities.
So, it's already started?
Many people say it started a year ago, and if banks and other big money want out of equity, debt and fiat paper of various types, the PM markets are far too small to absorb potential buying demand, so the fiat sellers look to more and bigger markets: oil, grains, softs, ag land, water, REMs.
One vision that keeps re-appearing to me is musical chairs for money: safe $itting places are being removed - real estate, long bonds, muni bonds, currency pairs, sovereign debt - while a few safe chairs are emerging that look so strong as to cause multiple players to pile onto one chair when the music stops, and the chairs are holding up: hard on your assets, but very strong chairs.
Porn is loosing terrain XAG-F5
Pshaw!
And once commodities are financialized, they are then stored, archived, hoarded, and rolled around in nekkid, just like money used to be. They are not spent, used, given, taxed, circulated, distributed or otherwise gainfully employed.
unhhh,...not sure what the prob is, quite yet, but i think by "financialization" the commodity doesn't really change, ok? it can be stored, hoarded, and rolled around in! it can also be used, given, taxed, perhaps, certainly with gas(!) traded around, and used, or even eaten!
the gal of gas or pound of sugar doesn't change, i would say. you own it, you decide whatcha gonna do with it. buy gold, lumber, meat, or cotton. it's yours; do as you wish with it.
like in housing: the house doesn't change and joe & mary still pay the mortgage. but wait! the mortgage is going thru more tranforms that a magic genie! first, it gets "bundled" and securitized in a big collection of "tranches"; then, it's given investment gradings and marketed to marks. then people who have no interest in it, but were in on the fraud from p.1 buy insurance in case it defaults. really cheap too. how could this default? lQQk at the quality of the insurable tranche bundles! and so on...
well, maybe someday sooner than we think, we'll begin to understand more about what these same crooks can do with commodities "securities". but, ya can't beat selling about 70X the august corn crop b4 the seeds are even delivered to the farmer and before he plows and discs his fields. plenty of cash for eveyone to play, and this is before "securitization" whatever the fuk that means, anyhow. 5000 bushes. $7.72 per bushe. $38K+ per contract. credit available. how many for you, ma'am?
i still have no idea what securitization of corn might mean. just styooopid, probably. options? maybe, but that's a pretty common derivative for the futures markets, already.
hey! how about we trade the ethanol from the corn contract over coffee?
Good points all, and its a bit hard to think about, like all cogitations on what money is. But I think it has something to do with the fact that actual stuff stops being used and starts being stored instead. Not in anticipation of a bad weather front or a mine strike, but as a safeguard against a breakdown in the money medium.
What fungible items will still have barter value if money disappears - whatever they are, get some and store it for future exchange/trade. This is the financialization of commodities.
For example, I'm more or less in the jewelry business and silver is now getting too expensive for regular people to afford. Silver isn't for earrings anymore, its stored in vaults instead...
Silver is undervalued at 41 U.S. asswipes.
Max Keiser came on this really good idea. You should look at his first post on...uhm...you know...that one place we are not...uhm...you know the first rule.
so much for the velocity of money argument. seems like there is some leakage somewhere......
Blythe's wet dream.
+1. The Keynesian retards are probably just going to rationalize this thing away until the Weimar end game. Of course, then there will just be some stupid debate between Republicans and Democrats where each throw Keynesian poop at the other.
Anyhow, I guess it's time to get a few mortgages under the belt to maximize the silver and gold pay off.
I have been thinking the same thing. Go long on debt while the rates are low and then wait for the inflationary tsunami. You get your house for free and then you have all those PM's in the basement. Win-win, I'd say.
The exact same thing happened in venezuela in the seventies. I knew people paying fifty bucks a month in a long term mortgage for a.house that could rent five years later for 300 per month.
There's a guy that puts it all into a sort-of-decent presentation. Dan Amerman. His site is called Turning Inflation Into Wealth (http://danielamerman.com/). Pretty decent explanation on how having a mortgage is an ace-in-the-hole during an inflation. And how, through capital gains taxes (of course we'll pay them... honest Mr. Geithner), you actually lose even with metals unless you are winning through a mortgage. All that said, with residential real estate prices dropping like an old man's nut sack... it's hard to pick the right timing.
Timing is everything in investing isn't it? Thanks for the link. I will review it and make my best guess. Just wish I didn't have to write the government a big &$^(# check this week. The only thing I believe is that with the oversupply of housing the equation might be a bit different these days.
No problem. It looks like rates will stay relatively low for a while, so my guess is that there's still plenty of time. I feel your pain with checks to the gubbmint. They never send me thank you letters, just mean nasty threats if I get behind with my tax-slave pound of flesh.
I have read about 20 of Amerman's post and he is absolutely correct. I was quite surprised to read the exact same strategy in "Secrets of the Temple" by Greider, a book from1987 describing the inflation of the Carter era. I realized that this has all happended many times before and there are MANY people who know exactly how to play this. Stay confident!~ What is happening is, I believe, inevitable. Don't get flushed out by some tiny trend. The major trend remains...the dollar is going to get hit very very hard, and maybe very very soon. Read Amerman, he is kind of fond of weird metaphors but he will tell you how to play inflation like a pro (and trust me there are many pros getting into this play.
Pre market early Monday I am adding yet another 1,000 shares of USO (oil) and 1,000 shares of PALL and GLD.
If Bill Gross can bet $73 Billion, I am in the game too for wealth preservation with oil, gold and palldium etfs.
Good luck to all!