Premarket Summary: Inflationary Hysteria

Tyler Durden's picture

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.

Gold:

Silver:

WTI:

Corn:

etc.

 

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topcallingtroll's picture

No that isnt james, just a follower.

The real memsaheeb was killed after being thrown from a horse. If i remember correctly.

Armchair Bear's picture

memsahib died of cancer and chose jwr new wife before she died

Long-John-Silver's picture

I'll bet Vampires vaporize if they come within 66.6 feet from you.

r101958's picture

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.

rubearish10's picture

Bingo! Confidence has been officially "Shanked"! Many readers have yet to witness hysteria.

Mr Lennon Hendrix's picture

But why would the banks with the most gold reserves try to print their fiat the way of the dinosaur?  Wait a minute!

Fix It Again Timmy's picture

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...

boeing747's picture

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'.

 

Dan Alter's picture

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.

 

 

 

 

Long-John-Silver's picture

Guess what happens to silver and gold prices when you actually have to spend them to live.

You live and burn the worthless collapsed fiat paper in the dumpster beside the bank to keep warm.

web bot's picture

1+.

This is a commodity suckers rally.

Crisismode's picture

This is a web bot short extravanganza!

Barking Spaniel's picture

Just took some delivery of my silver. Tired of all the ignorant fucktards who don't get it.

pitz's picture

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. 

Boilermaker's picture

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.

 

mogul rider's picture

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

slewie the pi-rat's picture

lol!!!  speak the honest truth and get junked!  good for you!!!

latcho's picture

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 !

Zoomie's picture

Suggest American Gold Exchange, Austin TX.  They are also recommened by one of the Stansberry Associates, Dr. Steve Sjuggerud. Good service from AGE.

Bazooka's picture

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.

mogul rider's picture

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.

 

 

latcho's picture

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.

tmosley's picture

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.

WaterWings's picture

And, you can't eat your house.

Muir's picture

tmosley

#1156382

 "Anyone who owned gold or silver become nobility"

delusions of grandeur my friend.

tmosley's picture

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.

topcallingtroll's picture

But you gotta love the boobs

tmosley's picture

Plenty of boobs around here.  Especially when silver is off 0.5%.

slewie the pi-rat's picture

lol!!!  well done tmo_!!!  and, bazooka's only garnered 14 junks for what he said, there too!  yay!!!

disabledvet's picture

no shit.  "dem be brains movin'."  the government confiscated everything "as a result of Weimar."  Leaving aside "the millions annihilated" of course.

latcho's picture

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.

slewie the pi-rat's picture

BINGO!!! for the Consititutional bimetalism/biflation there strnglv!  keep up the good breathin, doc-tor!

akak's picture

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"?

Infinite QE's picture

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. 

Bastiat's picture

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.

slewie the pi-rat's picture

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!

Long-John-Silver's picture

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.

mogul rider's picture

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.

dogbreath's picture

i'm not that smart either.  I thought the crash would come in 05-06.  live and learn

trav7777's picture

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

mogul rider's picture

umm Trav my Japanese concubines got cheaper in Yen every year.

"Splain that one"

Ahmeexnal's picture

Easy to explain.

They got cheaper every year...because they got freakin older every year.

 

Mr Lennon Hendrix's picture

He says with a bag of rubles slung over his shoulder....

High Plains Drifter's picture

http://en.wikipedia.org/wiki/Gold_reserve

as of dec 2010, japan has on hand 765 tons of radioactive gold.

TerraHertz's picture

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

zen0's picture

If one must buy the dip, one must sell the spike. Banksters got one more spike to sell, no? (mr. cranky)

slewie the pi-rat's picture

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!!!