Rising Consumer Inflation: The New World Order By Commodity

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Thu, 01/13/2011 - 11:07 | 872890 whatz that smell
whatz that smell's picture

QE27: Deflation bubble bailout (inflation stamps)

QE28: Inflation bubble bailout (deflation stamps)

QE29: Momentum Trade bubble bailout (lemming stamps)

....

Thu, 01/13/2011 - 10:52 | 872845 RoRoTrader
RoRoTrader's picture

Nice call on that long OIL trade from Sunday night, Dian........

Thu, 01/13/2011 - 10:28 | 872790 alter ego
alter ego's picture

Hey folks we are suffering for the next Oil Shock.

 

How do Oil Shocks create recessions?

In Many ways, the most fundamental linkage between Oil shocks and economic recession is that Oil shocks always cause huge spikes in inflation and those spikes in inflation are accompanied by huge spikes in interest rates that eventually snuff off growth

 

Every Central Banker knows, even misleads Central Bankers as Alan Greenspan or Ben Bernanke will tell you that your borrowing rate is a mirror image of your inflation rate.

 

What drove that huge increase in interest rates?

What droves that huge in interest rates is the same thing that droves that huge increase in inflation. Almost all increase has been drove by only one component of the CPI Index, the “Energy Component”.

 

                                                Jeff Rubin

 

 

The infinite growth paradigm and finite energy:

 

We live in a infinite growth paradigm which requires growth forever, is not that Bernie Madoff made a pyramid scheme, the whole US economy is a pyramid scheme. The whole world economy ca not been sustained, because requires infinite growth.

But infinite growth collides with finite energy.

1)      First law of thermodynamics: energy can not be created or destroy. It can only change forms.

2)      Second Law, energy converts in only one direction from usable to unusable, that is called entropy, for every energy transaction, come energy is lost.

 

We have finite energy and you have a financial paradigm which requires infinite growth and we are in a point of human history where the infinite growth paradigm collides with something more powerful than money is.

 

                                                                        Mike Ruppert

 

 

Thu, 01/13/2011 - 09:52 | 872676 blindfaith
blindfaith's picture

"In today’s environment, the best way to hedge inflation is probably to invest--through patience and discipline--in commodities"

You mean the best way to drive up (inflate) the price of everything is to drive up (inflate) the price of the raw goods...right? 

Am I missing something?  Hedge/invest in glod or silver if you wish, but how does driving up the price of goods help your broken country in the end?

This is a fantasy. 

Want to invest in something, invest in chain link fence and barbed wire manufacturers.  There will be a big calling for those goods if this commodity shit keeps up.  (excuse the language, but it fits here).

Thu, 01/13/2011 - 10:00 | 872701 AnAnonymous
AnAnonymous's picture

Yep, you are missing something. The part telling that the most valuable side of the deal is made through screwing those who do not hedge in commodities. That is where the good in the deal comes from.

Thu, 01/13/2011 - 09:59 | 872697 Moonrajah
Moonrajah's picture

Nah, just go for the bottomline - guns, crowbars and baseball bats. It will all boil down to them, methinks.

Thu, 01/13/2011 - 08:10 | 872510 eigenvalue
eigenvalue's picture

Another piece of worthless Monday morning quarterback "analysis". Everybody knows we should invest in commodities.

Thu, 01/13/2011 - 09:57 | 872688 Moonrajah
Moonrajah's picture

By "everyone" do you imply yourself and a couple of your cubicle co-workers?

Thu, 01/13/2011 - 07:45 | 872500 Sudden Debt
Sudden Debt's picture

Just wait untill the farmers rise and demand a fair price for their products.

That could also tripple prices.

Thu, 01/13/2011 - 08:57 | 872545 Arch Duke Ferdinand
Arch Duke Ferdinand's picture


""Just wait untill the farmers rise and demand a fair price for their products.

That could also tripple prices.""

...Which is why Canada's, Geneva of Switzerland, becomes the most important "Safe" city in North America.

It is the key gateway to Canada's Western Provinces plethora of commodities.

All four Western Provinces total only 12.5 million citizens...

http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/01/vancouverthe-geneva-of-switzerland.html

Thu, 01/13/2011 - 08:28 | 872525 ciscokid
ciscokid's picture

Farmers are paid almost nothing for their products.

Thu, 01/13/2011 - 07:35 | 872495 Popo
Popo's picture

As bad as inflation is in the US -- it's *nothing* compared to what it's doing to emerging markets.

...and the expectations for EM's is that it hasn't even started yet...

e.g. http://thaifinancialpost.com/2011/01/13/inflation-in-thailand-to-skyrocket/

 

 

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