This page has been archived and commenting is disabled.
Silver Shorts Bloodbath
In what can be only described as a total gutting of all silver shorts everywhere, including those with infinite Fed funded balance sheets (wink wink Blythe), all one can do is commiserate. With silver hitting $35.55 intraday, not even a last ditch attempt to spread the ridiculous Chavez rumor once more (this time the two dictators will really get peace ironed out, we promise) will prevent a battery of margin calls from forcing all the silver market timers to liquidate assets to keep their primer brokers happy. That's ok: all those market timer will sooner, or much, much later, get the top right.
»
- 30387 reads
- Printer-friendly version
- Send to friend
- advertisements -
COME GET SOME!@@@##
eat this Blythe
http://www.youtube.com/watch?v=XXt6NEV_Grc
I told ya. Its the metaphorical "train" being pulled on Blythe, the JPM metals whore. Baby, bend over and take it like a man.........
CHOO-CHOO!
Duh, Winning!
Blythe, Get To The Chopper !!!
shoulders, head, outstretched arm with extended middle finger
+1. Just can't go wrong with a good FMJ reference.
"Just don't lead em so much"
Damn it feels good to be a gangsta...er...silver owner.
bitchez.
Vertigo bitches.
Got silver, bitches?
THIS IS SPARTAAAAAA!
who exactly are these silver shorts? who the hell would short silver in this environment? clearly shorts aren't being forced out yet as the big banks would exit en masse and cause a truly parabolic move....thoughts?
JP Morgan is the big dog. They have access to free money, so they literally CAN'T be forced out, no matter how high the move.
Of course, they will have to deliver the silver sooner or later, as longs continue to stand for delivery, though perhaps not in the volumes hoped for by silver bulls.
and Don't forget BAC and C!
They are in the same mess!
crash jpmorgan buy silver
winning
I recently read an interesting thesis that it is in fact China and not JPM that is the big silver short.
The purpose is because the PM's tend to move in tandum and by surpressing silver they can supress gold.
Why not directly short gold? - silver is a much smaller market and more easily manipulated.
Why supress gold? - So you can continue to accumulate as mush as possible at lower prices to one day back your currency with it, replace the dollar and become the world reserve currency.
China plans in centuries and is willing to accept short term silver losses to accomplish their goal of global domination.
See: http://www.globaleconomicwarfare.com/ This person has written for the DOD.
That is Ted Butler's theory.
If they are doing it, they are doing it through JPMorgan.
Reasonable theory. But the problem is that the cost of holding silver short is far more than the benefit gained by buying gold slightly cheaper...
The cost in toilett paper USTs and FRNs. What are they going to trade them for? New seasons of reality shows or transformers 3?
I disagree... they could sacrifice one of their tier 2 investment banks (a Chinese Bear Stearns) - Lard it up with more and more derivatives, billions of ounces synthetically shorted, until the thing explodes. Then simply walk away.
That's diabolical. You're a dangerous man.
That was part of Ted Butler's theory. They are long SLV and short silver futures. They are redeeming SLV for physical metal, and intend to simply default on the silver shorts.
Not terribly far fetched. I had thought of a similar scheme myself, but I don't have sovereign power to back up such a nefarious plot.
But, why would Gensler et al be under pressure to let the Chicoms keep making a joke of their commodities exchange by holding absurdly sized positions? That doesn't make any sense. Their being ordered to let JP Morgan abuse the market, that makes sense, at least as far as having understandable motivation.
Trade off on the beating china is taking on their treasury holdings.
+1 AR.
They'll crash & burn...I stopped by my dealer yesterday, he's out of 2010's...he had to root around in the back of the safe for 04's at the same premium over spot.
He always asks if I'm sellin or buyin when I walk in...I just give him a wink and smile.
G/S ratio is at 40.16 now and falling like a rock...lookin good Billy Ray ;-)
http://www.youtube.com/watch?v=XtKydtoLucc
"Free and unlimited coining of silver at a ratio of 16:1."
Maybe we'll get there.
Some day.
Some how.
that's what I'd do. hahaha good one! but IMHO too crude for the chinese politburo. they like balance not kaboom.
40Million+ starved, dead, Chinese peasants would beg to differ with that statement...
Sorry, I can't seem to find the exact link right now, but FOFOA makes a pretty good case that the gold price is suppressed to hold down the price of oil. The idea is that the Saudis have a grams-to-barrel ratio that they try to maintain. If this is the case, then the benefit of lower oil prices might well be worth the cost of holding silver short. And it probably was, until the whole thing blew up in their face.
The article is called "Flow" IIRC.
The international priesthoods plan in millenia.
Dont kid yourself, China is SCARFING up all the silver they can get.
Rumor has it they took 2 million Silver Eagles off the market here, last month.
Just like Japan, prior to WWII, they bought everything they needed to engage in War.
China is likewise, for a different kind of war.
Now, where are those three wascally wabbits who have been dissing us for the last month. Oh, there you are! Hiding in amongst the comments as junk. Come out, come out, where ever you are!
so, the ubiquitous addiction of chinamen to opium 100 years ago was all part of a centuries-long plot to trick us into letting them counterfeit Louis Vuitton handbags? WTF?!?
Those weasels think waaay ahead!
Even Nixon can't go to Goldman's china.
With all do respect to Ted Butler and all else who hold this theory, have you noticed the ratio? We were 60:1 three months ago, today we are 40:1. I realize that silver is a much smaller market but wouldn't the fact the silver is increasing faster negate this theory.
The Chinese are advising their people to invest in silver so wouldn't it be better to all buy in at once and be on the correct side of the trade?
Cheers, I got white trash mimosa(box wine and orange juice) and Beastie boys are on the radio!
HSBC
HSBC is a very small actor, compared to JPM.
HSBC? yes, quite a nimble playa, in spite if it's diminutive "size".
March 29th is the big day I guess....when physical delivery will be demanded.
even the end of feb deliverys
cash was used by morgan to buy positions
as much as $50 bucks was paid to settle in cash/
either take the cash or we make an offer you will not refuse
If that's really the premium to put off delivery - the precident will only delay the inevitable. The COMEX is all but blown.
This is f'n beautiful.
This is what you get for fking&$&#^^# with Paper ETF's.
This 'free money' can only be freshly printed (the FED has no personal value-assets).
So it can only push inflation -- and the price of silver -- higher.
I believe the Fed now has a lot of CDO and MBS garbage too...so they own depreciating RE if that's something.
Jesse has an interesting story regarding JPM. http://jessescrossroadscafe.blogspot.com/2011/03/gold-daily-and-silver-w...
Chinese government to JPM. Where is my fucking silver?
JPM to Chinese government. To quote Mister Cee-Lo Green (love the outfit).
Fuck you! Oo, oo, oo,
http://www.youtube.com/watch?v=17eSUnQ-_ek
I rather doubt that when China holds the detonator for that huge bomb under the American financial system.
Here; take this copper, sugar, cotton, and oil instead.....
I believe silver was one of the main control valves they used to control the whole market. It was always was. Imagine that. Poor man's gold. Geez, what could it be that scrares them so much about that evil "industrial" metal, that they call junk...????
And, what happens when delivery turns impossible? Not only will there be a total lack of faith in our currency, there will be a lack of faith in silver too! I'm going long on alcohol and canned goods.
When that happens, the paper price will probably crash, but it won't matter because you won't be able to get physical anywhere for any price until the smoke clears. Then price discovery will happen by physical markets.
Hmmm...black market. The only truly free market. The black silver market. I like it.
My hopes is that it wont JUST dissapear here...........
The Asian Mkts,and Indians, are worse than we are on hogging it up.
Comex is his-to-ry.
China is demanding delivery of 100s of tons not just tossing chits around so the short squeeze is on. You would short PMs if you wanted to maintain your ability to sell paper. Fiat everything will be unmarketable if the price keeps rising for Silver. A really huge headline on Silver like 100. will awaken everyone + Blythe will be broken.
Jesse (Americain Cafe) was talking about this one time a few months ago, about how he thought one day, some big boy would come out of the shadows and swamp the JPM shorts. Ha ha ha . I love it.....
The $50 cold shower will wake people up way before $100.
You're really asking the question? Where have you been Roy?
Ask MathMan.
Poor bastard was warned...
My dumb ass bought SLV puts right before close last night in hopes of a turning a quick dip in prices into some physical silver. I lost. But technically I wasn't short since I was never going to exercise.
You play Russian Roulette, sometimes you go home in a box.
I might start thinking about going tentatively short for a bit at around $60 silver but even that might be only half-way
if you havent seen this $138 (?) silver video, you need to.
Let's just see if the market stays irrational longer than they can stay solvent. Silver Buyers vs. Bernankestein! It's Go Time , Skippy!
does she need lunesta or ambien?
She will be in the office most of the weekend. Does her blow supplier make house calls?
Administrative Assistant...blow supplier --
is there a meaningful difference between the titles for an individual who is 'helping out' someone at Blythe's level?
IOW -- always available at a moment's notice.
Will a dose of Feariflu counteract the side-effects of Greedquil? Only your Doctor knows fer surez! :>D
FUCKING OBLITERATED!
Huzzah!
I'm envisioning that silly internet icon - the dancing banana!
Peanut-Butter-Jelly-Time!
Beachballs Bitchez!!
FUBM
Don't trust those silver/gold ETFs. If the banksters get a solid position of suckers, they just might tank the ETF when the street price is higher. Last time i checked you can't deliver silver from ETFs either. even if you could deliver, i still would be skeptical of exactly what the banksters were delivering... probably tin foil balls with a stamp "Made in China".
It depends on the ETF. SLV is mostly paper. PSLV actually has the silver, or so they claim.
And you can indeed get the silver out of both ETF's, or so it is claimed, if you have enough shares. Supposedly China has figured this out, and has been taking their silver out of SLV, since it's faster than getting it from the Comex.
One should be careful of, or avoid completely, most commodity ETFs, if you're not aware of the games which get played on the ETF. USO comes to mind. Such ETF's are played as suckers, and the stupid money gets liberated from them quite handily.
You all should check the 1 year silver chart and ask yourself:
DO YOU SEE A TRENDLINE APPEARING OR NOT??!!
And here I thought that this afternoon's green spike in the ES was bernake's money.
Not quite 36. Looks like I missed my call. Oh well. :-)
Where's Littleus dickless? RobotTrader? InnumerateBoy?
I'm sorry to say you'll need to wait untill monday...
$35.71 in the close (APMEX ask). Missed by a whisker!
Robot's still crying that his then guru Tom O'Brien got him to sell his gold and go short at 1200. That's what you get for being a talentless follower.
Massive shorting = True price discovery manipulation. They're just going to get murdered which is what Tyler's getting at.
They're going to continue shorting and shorting all the availble liquidity and people who are long this rare-ass metal are going to keep taking their money. It won't stop this time around and once the liquidity drys up the longs will laugh all the way to the bank.
Meanwhile, Blythe gets shitfaced with the Bernank while they laugh about how little the silver market is and how much money they've gotten in their own bonus structures.
+10, tek
And a nice avatar. :)
Screw the bank I'm putting my hard cash under my mattress. psst don't tell anyone
You under estimate blythe & her craftiness. The short position is on paper only. They also have large physical position. While you might think they just cancel each other out - they don't. The short position was built to push down the price so that physical can be accumulated for below what would otherwise be a higher market price. Their intention was to make money by the selling the paper as the price falls (which they did). Gresham's law dictates that if the current market price is below the true price - it will disappear. Backwardation anyone?
Once no more physical can be had and since the entire reason to build the paper short position was to accumulate cheap silver - and they have accomplished that - the next step is to default on the paper short position. This has the effect of driving the physical price skyward while also sticking the paper longs with the bill for the morgue's accumulated physical long. Then when the price gets high enough they will dole out their physical hoard with an eye dropper. Pure genius.
They make money on both sides of the trade. Notwithstanding the lack of a moral compass she is a typical bankster.
This is the part of the equation the Ted Butler's of the world are missing. The morgue is a silver BULL in BEAR clothing.
Yup! Deficits don't matter.
Bought a Gold maple leaf recently thinking silver was looking Topsy - maybe a couple tubes of silver maples was a better choice !
Silver is a fucking animal now.
Stop buying gold. Buy silver man. Hold it for a few years (or til an obvious top forms, which I don't think it will anytime soon)
How much do you think your gold will be worth compared to silver when there's no mineable Ag left in the ground (circa 2020) to mine? I don't know, but it will sure as shit be worth more than gold.
Perhaps Its the freegold / Bankster meme - I have done some heavy lifting in silver and ain't selling but I am of a conservative bent and prefer to increase Gold holdings during times of geopolitical tension.
I've been doing the same thing. I might not get the upside in gold as I would in silver, but I think I have enough Ag and I thought I should diversify more into Au.
Love the handle. "Give me the keys you MUTHAFUCKKINNN COCKSUCKKAAAAA!!!"
I'm right there with you JP. I have enough silver so that should it have the humongous spike, well that's great.
But for me, new money goes into Pt or Au
I'm just starting to acquire some gold. Sold some silver the other day when it was up to get some. I'll still be getting both as I can. I think this paper game has to end at some point, and I want to be holding physical in both when that happens.
Word.
That's the trade: Ag today - trade into Au once the ratio is closer to the historical ratio.
Word.
+ $35
+ $1425
Hold my silver, buy more gold.
I had to start buying some gold. Job keeps me moving around and the silver is almost too heavy to lug around...almost too heavy.
I just bought two 1 gram gold (uhm) stamps. I figure that it is small enough that it is undetectable for embedding in clothing and stuff like that. I figure that if things suddenly go to shit when I am traveling that it will be nice to be able to get a very long bus ride anywhere. Its much harder to get that kind of insurance out of silver. I figure that if I get robbed down to my underwear that it will be possible to pull a bit of gold out of my ass. I suppose that I could do the same with diamonds but I hear that they have rough edges.
It's so heavy though....
Yup gold's upward momentum is an shallow affair compared to silver's sharp rise.
Blythe and friends are flighting an losing battle against an historic equilibrium ratio of 16:1 as well as an tight supply and demand squeeze brought on by their own under hand activities.
Meaning silver should be around $89 an ounce today, so it has some catching up to do yet (imo of coarse).
whatever happened to goldmiddlefinger and the rest of the PM trolls?
They're getting the shit beaten out them by their loansharks today after getting their asses handed to them in the short squeeze.
I want MathMan's head on a stick! "It only costs 5 bucks to dig the shit out of the ground"!!!!
That phrase makes me laugh every time... love it
He changed his name to Billy the Bastard and continues to spam on ZH gold/silver threads.
Ladies and Gentlemen, we are witnessing history (the end of the cartel's controlled suppression). I've been on this PM wagon since the late 90's, and I never dreamed it would take this long to see this happen.
Long and Strong Bitchez!
And BTFD.
Really! I 'converted' in 2006 and never thought it would go on this long. But I'm in no hurry. In the meantime, I've bought a lot more.
My only regret is that I didn't sell gold for silver in late 2008, like Ted Butler advised, when the ratio was above 80 vs. ~40 today.
Yeah, I rememeber the gold shows when you could throw a bowling ball down the aisle and never hit anyone. I was there In Vancouver, BC when GATA was formed in 1999. I new the JPM crap way back then. Everyone thought we were completely nuts. Kudo's to Chris and Bill. They are good people.
Mai Tai's tonight here in Maui. Cheers and Aloha to TD and Co. and my ZH gold/silver crew.
You guys rock...
Bay of Pigs
Well I was pretty young then but someone handed me a few New Americans (John Birch Society). It was all Federal Reserve bad, UN bad, NAFTA bad over and over again. I loved it. I wish that I knew how to make money then though off of all of this shit (like GATA). Basically my dad thinks that gold is a barbarous relic, etc, while meanwhile every person that is elder in my family is going to be wiped out through housing value collapse, devaluation, reevaluation and maybe even outright seized money. Meanwhile I try to accumulate a few coins which is kind of a joke really when compared against wealth that my family could be preserving and growing right now. Its a total shame. We'll see if I am a jut job though or if my family loses over 50% of their current alleged wealth. When it happens though they will not recognize and will be offering up some further talking points. It seems that everybody that I know that knows what is going on here (dollar collapse) is poor and under employed and can't take advantage of it while those who are grinding away making new notes are too busy and illusioned to care. Its the perfect theft really.
Stick your nose out the window and take a big whiff. Because there are so many poopy diapers at JPM right now you can probably smell 'em from here.
But but, the deflationists, Math Man, William and the lady on CNBC told me this was impossible.
Where IS that Math(less) Man.....such a tool.
....such a toad. there, fixed it for ya.
If only costs 5 bucks to dig the shit out of the ground!
And crashing to $10 by June!
Au to $0.02 by August!
Ag to $0.01 by August!
You mean; his $0.02 on Ag which would put Au at $0.32.
He forgot to remind us that it takes another 5 bucks to bury it and dig it out of the ground later.
I'm guessing he's throwing up somewhere.
can I call for a little respect for deflationists (and reality) please and inflationists to take their blinkers off if you'd be so kind.
Inflation in Gold, Silver, Oil, Copper (Commods' etc), stocks and Benny the Beans money supply
Deflation in US property/mortgages, consumer credit and US State budgets
All i ask is inflationists stop ignoring the crushing deflation (imploding debt) in the economy by taking their eyes off the inflationary forces for more than a second. I'm in Gold (wish it was Silver, ho hum!) so i can see inflation as well as the other side of the coin. Balance please
Inflationists never said that property would rise in value. They hyperinflation theory is that anything that is traded internationally will rise in price, along with anything containing those components (ie bread). Things that can not be exported, like real estate, natural gas, large appliances, etc will go down in price.
Hyperinflation comes when people are starving in the streets and on the verge of rioting in a government-destroying manner. Then the government will print money to try to make the problem go away. It won't work for long. Especially not when everyone holding dollars sees what is happening.
Tmosley
In a true inflationary economy everything should go up. That's because everything is floating on a sea of over-printed Benbabwe Beans.
That's NOT what we have in either the US or Europe. We have a mighty confusing mixture of inflation in some sectors but deflation in many others.
I'm asking inflationists to at least deal with that reality just as I as a deflationist can see the inflationary forces still very much at work. Let's be fair not blinkered
Not so. Even in a true inflationary economy, some prices can decrease due to changing preferences.
There was a huge deflation in the 30s yet Gold was forced to rise to cover the excess credit creation of the 20s - we have pretty much the same thing going on now even though we do not have a official gold standard.
Wages are deflating through unemployment pressures and globalisation of the workforce creating excess humans at least in a economic sense.
This is infact a real form of inflation although it is inverted and somehow a paradox for some (I don't see why )
The credit produced during the boom created huge deposits and liabilties for the banks - there is little yield in risk free deposits so there is a opportunity cost in leaving it on deposit - people are in a great prisoner's dilemma game engine and sooner or later people will learn that under these parameters it is best to defect rather then remain in yield less risk free stuff or equities which have a huge risk factor.
Better to just follow the real money.
Thisson - i think you're simply saying prices go up and down in inflationary and deflationary economies. Yes alright. But there's no mistaking an inflationary economy as across the board most things go up (see Weimar or Zimbabwe). In a deflationary everything across the board should go down, from stock markets, housing, consumer and retail markets to precious metals.
What we have now is a mix of both. One force, inflationary or deflationary, will win the battle shortly and i'm betting it's deflation simply because our problem is debt. When debt implodes it's deflationary on everything that was 'floated' by debt (credit) previously. It just implodes in price
I'm glad you specified what you're betting on; deflation. This makes it very simple to reply to you. You're wrong. "But there's no mistaking an inflationary economy as across the board most things go up---" Apparently this is not true, since you live in an inflationary economy and you are managing to mistake it for something else.
IQ145
You say, "..you live in an inflationary economy and you are managing to mistake it for something else."
I wrote we live in BOTH an inflationary and deflationary economy right now. It's a mix, and a messy and confusing one at that! You may have an IQ of 145 but like most inflationists you don't see any deflation. Unlike you I understand the deflationary argument but I also understand the inflationary argument inside out. You'd be better prepared to judge who is "wrong" if you took off the blinkers and did some deflationary reading. It might surprise you how much stronger the numbers stack up and point in favour of a deflationary depression ahead
Until 'Mark to Model' changes back to 'Mark to Market', there can be no 'deflation'. And even in that instance, there won't be any deflation either as long as the big banks hold the lion's share of toxic assets, because every central bank controlled by GS alumnis has a 'printing press' at its disposal that goes from zero to infinity in less than 10s.
Keep in mind: 'Infinity' is an infinitely larger number than even 'four billion trillion to the quadrillionth power'.
Now, should those banks manage to offload enough of these toxic assets onto sovereign nations' balance sheets; well then you can expect a massive deflationary 'event', but until that happens...problem 'they' are having with this anti-matter transfer is that real assets (ie those with little or no counter party risk) are being denominated less and less often in USD these days; I'd guess because the world is becoming very wary of the USD, and any 'quintuple A rated', financial 'products' based on it.
RE:Real estate; just a slowly collapsing bubble being unsuccessfully propped up with toothpicks, instead of being allowed to burst like the commodity market did in late 2008.
But who knows? Anything could happen, right?
Then Weimar didn't experience inflation.
Expenditure on housing fell from some 38% to 0.2% within a couple of months, though it eventually started rising--at a MUCH lower pace than everything else.
Don't get too hung up on definitions. If you acknowledge that most prices are rising, and if you believe that trend will continue and accelerate, then you are an inflationist/hyperinflationist.
Tmosley
Just to repeat quite simply there is inflation and deflation about right now. All i'm asking is the inflationists stop a while, take the blinkers off and at least acknowledge deflation is out there. Which force wins and overwhelms the other only time will tell.
Regards inflation "accelerating" if you look at the Govts' CPI and indeed John Williams more accurate CPI figures inflation was accelerating up to 2008. But Credit Crunch 2007 took time to work through and hit the CPI in 2009, according to JW's figures halving the CPi from some 14% to 8% in under 9 months.
Namely there was a colossal trend change from ever higher inflation to halving it. If you believe in the double-dip then Credit Crunch II will hit even faster and harder. Credit Crunch is deflation in a nutshell and it will do the same to the CPI again, but wreak even more deflationary havoc
I think you're pretty much right to ask that the deflationary force of the deleveraging as a result of the the credit bubble explosion be acknowledged.
I think honest believers in inflation see it as the Fed response to deflationary pressures.
Although the dates described in this video are bogus, the ideas are not:
http://larouchepac.com/node/11319
When is the Great Implosion (controlled descent into terrain!) gonna occur? I think we'll all recognize it when it happens!
hey,Bob Prechter, don't u have something better to do ?
Bob Prechter has two sides... the Elliot Wave theory service which is a sack of absolute shit ...and the economist side where he has stood almost alone for the past 10 years predicting a deflationary 1929-stylee meltdown.
I've listened intently and respect both inflationists (Jim Sinclair, Jim Rogers, Peter Schiff, Marc Faber etc) and the few deflationists about like Prechter and to me it's 'no contest' whose arguments stack up: deflationists will win the economic debate unequivicably.... time will tell...
you are unequivicably wrong. Complete nonsense.
By God.. someone who seems rational..
I (perhaps vaguely) grasp your thesis, and would appreciate your comments on the following:
To me, it seems certain items (mostly manufactures, including FRNs) are going down in value because of increasing know-how and global integration. (Deflation) Things that CANNOT be easily scaled up (e.g. food, oil, energy of any kind, personal services like - and especially - health care) are going way up in price. (Inflation)
While I work in the PM industry and hence have a vested in the latter, I'd appreciate your thoughts on which side of the pendulum will win out in the end.
http://larouchepac.com/node/11319
The pendulum is gonna snap off completely and millions, possibly billions of people are gonna get hit by the shrapnel! :>(
I'm sorry, but LaRouche is an effing crackpot and should not be used as any form of authoritative source whatsoever. I remember vividly this past summer, running into some of his nutjob acolytes in downtown Boston (at 100 Federal St), replete with Obama-Hitler posters and ill-informed rants. I spoke with a couple of them briefly, but once the crazy eyes manifested themselves I realized that this was not my preferred way to spend my time. Life is too short ;)
You misjudge by not taking into account that the US$ is now a reserve currency, which all commodities are priced in. Further, you fail to recognise that the German Mark and the Zimbabwean $ both printed outside the parameters of the global indexing valuation mechanism. The US $ is the cornerstone of that mechanism. Outside of US borders, prices for all goods are affected by US printing.
Inside the USs borders, discretionary money flows to staples and insurance against monetary policies (such as PMs) and is pulled out of fixed assets.
Taking into account the oversupply of US$s, a simple conclusion is advanced: Get out of Dodge, fast. Dump dollars and other depreciating fixed assets (who gives a fuck about the semantics of it) and buy PM's and other mobile investments, regarded as safe havens.
The deflationists are half right but their investing strategies neglected an important part of the equation and by being blinkered, have missed out on a prime move in inflation protection assets, by ignoring the historic (1944 Bretton Woods) change in economic drivers.
+∞
Acute Bi-flation ...
You don't hear the deflationist crying about HDTVs, cellphones, computers and other mass produced goods dropping in price. Then it's okay I guess? The Central Banksters don't like PMs because everything deflates against them.
Temporalist - yes deflationists should be "crying about" deflating prices in HDTV's, computers etc. Because its proof of deflation in consumer credit. There is a bottleneck in TV's as you mention because consumers aren't buying on the never-never as before. This is deflation in action, both consumers de-leveraging and changing their buying habits.
I'd say the reason central bwankers don't like PM's is because it is a store of value, a major embarasment to their Fiat paper money. The increase in price and 'popularity' of Gold and Silver purchases is a growing crowd sneering at their funny money system. They don;t like to admit it but social pressures get to them, even under their skin... let's keep it up
Please understand I'm not disagreeing with you, but trying to seek nuance.
Of course the price of physical goods is going down - why shouldn't it? As we progress farther and farther down the learning curve, the price of any mechanical, replicated good should fall. ECO 101 tells us that.
The question now is: which will way will the battle go? There are goods which are constrained by the physical reality - lettuce, for example - and goods which are restrained by political reality - teachers in Wisconsin, for example. Will the battle over replicated goods vs. scarce goods boil over into the streets, or will we seek some middle ground which recognizes the dual nature at work here?
What about stagflation? Wages don't go up then.
Ok, 'true' inflation.
In a true inflationary economy everything should go up.
It has been said that the difference between theory and practice is that, in theory there is no difference between them, but in practice there usually is.
Gonzalo Lira published a blog recently describing how property prices tanked when there was hyperinflation in Argentina. It appears that interest rates went so high that no one could afford to borrow money to buy anything, including property.
In the 70's inflation in the US, property prices went up somewhat and stocks were roughly flat in nominal terms.
Big Ben
Most inflationists are predicting a Weimar/Zimbabwe/Argentina hyper-inflationary type scorched Earth. I fully understand where everybody is coming from on this issue with benny the Bean up all night winding the printing press having tripled his balance sheet.
But what inflationists just aren't getting is it's the retail bwankers that have been printing for 25 years that's the real problem with their 30-40/1 leverage. They have created inflation for the past 25 years through credit (debt) creation which has worked into everything from housing to car markets to consumer loans for every imaginable product.
The retail bwankers debt mountain out-guns Benny the Bean 40/1. Probably 400/1 if you include the insane (£600 Trillion) paper mountain of derivatives. It is this house of credit (debt) cards that poses the biggest most overwhelming threat from implosion of that unserviceable debt which will be deflation, hyper-deflation in fact.
Benny the Bean doesn't stand a snowball in hells chance of creating inflation with his printing. He's already been PROVED useless with his utterly failed attempt to reflate house prices and the mortgage bubble. Benny with his pea shooter is massively out-gunned, simple as
"hyper-deflation" Oy Vey.
I personally am not expecting hyperinflation in the US. Ordinary inflation eliminates government debts well enough, so there isn't really any need to hyperinflate. I think hyperinflation is usually caused by monetary authorities who have no clue about what they are doing. It often occurs in new or revolutionary governments that take over after an existing government collapses.
I think that Ben B. is perfectly capable of creating any amount of inflation that he desires. But he needs some way to avoid being blamed for it if he wants to keep his job. This is why these possible oil supply disruptions are so worrisome. In the 70's Nixon/Ford/Carter blamed inflation on the OPEC oil price increases, and lots of people (including me) accepted that explanation. So when oil prices collapsed in the early 80's, I expected the price of everything else to drop as well. But only gasoline prices dropped and everything else just kept rising (but at a much slower rate than in the 70's). Actually the inflation in the 70's was caused by money printing by the Fed. When the Fed reduced its money printing, there was a nasty recession and afterwards inflation was much lower.