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"Transitory" Inflation Tally: Gold, Corn Record Highs, Silver 31 Year High, Brent 2.5 Year High

Tyler Durden's picture


Yesterday the Chairman said something about inflation being "transitory", and that he would be prepared to act by the time inflation becomes more then just "transitory", which we read as "permanent." So, in other words, by the time inflation is set in, Bernanke will be prepared to act, do we have that right?  We hope this is just another Transocean-esque vocabulary disaster, because while we all know how good the Fed is at predicting things, being incapable of sensing grammatical nuances is a Fed Chairman first... which is not surprising: nobody had any clue what Greenspan said most of the time. We just hope Benny's reference was not in the context of a "transition" to a permanently higher "new price normal." Which is maybe how the market interpreted his words: after enjoyed picking apart the irony in the Chairman's statement and once again calling his bluff, the net result is: gold and corn all time high, silver fresh 31 year high, brent 2.5 year high. At some point these prices may revert, and Bernanke will be right. We just hope that by then TEPCO is not in charge of cleaning up radiation ("it's only 1 nano sievert- we swear") from everywhere, not just Fukushima.

From Reuters:

Gold jumped to an all-time high above $1,450 an ounce on Tuesday, as peak crude and corn prices fanned inflation fears and a downgrade of Portugal's credit rating drew attention to euro zone problems.

Bullion rose more than 1 percent, its biggest gain in more than a month of range-bound trading. Silver soared to a 31-year peak. Both drew support from Federal Reserve Chairman Ben Bernanke's comments late on Monday suggesting he was committed to completing a $600 billion stimulus program as scheduled in June.

On technical charts, gold broke above a recent double-top technical formation around $1,440 an ounce. This added to a rush of buying triggered by news that Portugal's leading banks threatened to stop buying government debt hours after a Moody's downgrade.

Silver gained 1.8 percent to $39.12 an ounce, after hitting a session high of $39.25. That was the highest since the Hunt Brothers cornered the market in the early 1980s, when silver briefly hit a record of just below $50 an ounce.

Silver outperformed gold in the first quarter, rising 22 percent while gold rose 0.7 percent. The gold:silver ratio, which shows how many silver ounces are needed to buy an ounce of gold, fell to a 28-year low at 37.3.

 U.S. corn futures hit a record high on Tuesday, extending their biggest rally in six months as traders feared supplies could run out unless ranchers or ethanol makers cut back on purchases.

Corn has surged more than 15 percent in four days since a U.S. government report showed unexpectedly low inventories as of March 1. Gains slowed on Tuesday, with prices up a 0.7 percent as traders bet that the U.S. Agriculture Department on Friday will further downgrade its end-of-season stocks forecast. But with supplies at their tightest since the 1930s many saw more gains ahead.

"Corn has the potential to go higher and I see spot up to $8.25 to $8.45 and it will happen in April or early May," said Tim Hannagan, analyst for PFG Best.

Other grains have lagged the rally and ended lower on Tuesday, with soybeans depressed by a fourth interest rate rise in China, a move that threatens to reduce oilseed imports by the world's biggest buyer.

For all those waiting for Dennis Gartman's permission to jump in the pool (at all time record highs) it is finally here:

 Investor Dennis Gartman, publisher of the Gartman Letter, said gold was free from liquidation pressure once it breached $1,441 an ounce, a level which had triggered selling.

"It appears that gold is beginning a new up-trend after its recent consolidation," said Adam Sarhan of Sarhan Capital. "If gold negates this breakout and falls back below $1,440 to $1,430, one would expect sideways action to continue."

If the preceding wasn't enough for people to consider locking in some profits here, the following from UBS should serve as a wake up call:

UBS said silver investors show no sign of being ready to sell, even though there is a "real danger that silver prices have travelled too fast, too soon." Silver at $40 an ounce appears inevitable in the near term, UBS said.

And so more continue to "predict" the future, and be paid the big bux for their big calls.

Bottom line: if yes QE3: gold goes to $2,000. If no QE3, gold drops to $1,200, then jumps way beyond $2,000 following the deflationary tsunami that will flood the world, crash markets, and push the Fed's hand for one last expoeriment in failed voodoo economics.


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Tue, 04/05/2011 - 16:38 | 1138472 DoChenRollingBearing
DoChenRollingBearing's picture

Gold!  Get ya some!

Tue, 04/05/2011 - 17:18 | 1138621 unwashedmass
unwashedmass's picture




Ben said there is NO inflation. What's he talking about now????????/

Tue, 04/05/2011 - 23:58 | 1139706 Mark McGoldrick
Mark McGoldrick's picture

What's he talking about now????????

The better question is:  what is ZeroHedge talking about?

Tonight, in typical fashion, Zerohedge suggests Bernanke is to blame for high corn prices.

Yet, a few days ago, something got through the ZH "blame everything on Bernanke" filter, and the real truth behind corn prices was revealed.

Haven't the new ZH writers been fully indoctrinated, yet?

Tue, 04/05/2011 - 17:25 | 1138642 Moe Howard
Moe Howard's picture

Got Gold?




Tue, 04/05/2011 - 17:41 | 1138696 Anonymouse
Anonymouse's picture

No worries.  In 2008, he prevented the collapse of the CP market with 3 hours to spare.  Just think how much better he is 2 1/2 years later.

I figure Bernanke can wait until 15 minutes before inflation goes asymptotic, then pull the levers and fix it all.  He's that good.  Just ask him

That's what I call Just-In-Time management

Tue, 04/05/2011 - 17:53 | 1138747 covert
covert's picture

gold has been decreasing lately.


Tue, 04/05/2011 - 18:45 | 1138926 doggings
doggings's picture

will you fuck off spamming that shit blog on here with lame  and meaningless one liners you moron.


Tue, 04/05/2011 - 16:37 | 1138477 Sudden Debt
Sudden Debt's picture

In 2 months, news like that will be called: Same old Same old.





Tue, 04/05/2011 - 16:40 | 1138481 Exposer of Inte...
Exposer of Internet Shills's picture

Silver Bitchez!

Tue, 04/05/2011 - 17:14 | 1138601 DoChenRollingBearing
DoChenRollingBearing's picture

By chance I was watching CNBC at 3:15 PM.  Maria and what's-his-name were interviewing ERIC SPROTT.  He told the CNBC dynamic duo that there were only three things that could bring prices of gold and silver down.

When he mentioned getting government spending under control, there was a little bit of nervous laughter...  Like THAT is going to happen.

He then mentioned that maybe when gold went up over $100 for 2 - 3 days in a row, that might be a sign of a top.  I think Maria then asked something like:  So, gold will go to $1500?  Sprott just chuckled.  Priceless moment, Maria had kind of a stunned & dyspeptic look live I have never seen her have.  Made my afternoon!

Well gold and silver going up so much did as well.

Tue, 04/05/2011 - 17:22 | 1138631 Ray1968
Ray1968's picture

Does anyone know why Sprott's PSLV and PHYS seriously underperformed the PMs (and SLV and GLD)????????

Tue, 04/05/2011 - 17:46 | 1138709 Anonymouse
Anonymouse's picture

Yeah, I don't understand how PHYS was down when gold was up $25, especially when it happened earlier in the day. There's no dilution risk (given the new offering) in his ETF is there?

Tue, 04/05/2011 - 17:55 | 1138750 DoChenRollingBearing
DoChenRollingBearing's picture

I have seen PHYS and Sprott's silver ETF discussed here at ZH and why they trade so badly at times.  Maybe there is dlution risk...

Sorry I can't remember and can offer no references.

Buying the physical is just so much simpler...

Tue, 04/05/2011 - 18:12 | 1138820 Careless Whisper
Careless Whisper's picture

PHYS is not an ETF, it's a closed-end fund. The PHYS was weak today because Sprott is increasing its size and buying $300 million more gold. The pricing of he new shares caused the weakness. Long term it will perform the same as gold because they actually own it and buyers of shares have the right to convert shares to actual gold (there's a minimum to do that, I think it's around $1 mill).

Tue, 04/05/2011 - 18:42 | 1138914 Pegasus Muse
Pegasus Muse's picture

Sprott announced a Follow-On Offering after the market closed yesterday.


Sprott Physical Gold Trust Prices Follow-on Offering of Trust Units In An Aggregate Amount of US$311,255,340 04/05/2011 Download this Press Release 

TORONTO, ONTARIO -- (MARKET WIRE) -- 04/05/11 -- Sprott Physical Gold Trust (the "Trust") (TSX: PHY.U)(NYSE: PHYS), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, announced today that it has priced its follow-on offering of 24,821,000 transferable, redeemable units of the Trust ("Units") at a price of US$12.54 per unit (the "Offering"). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 2,347,500 additional Units. The gross proceeds from the Offering will be US$311,255,340 (US$340,692,990 if the underwriters exercise in full the over-allotment option). Certain lead investors, including certain funds managed by Sprott Asset Management LP, will purchase 9,171,000 Units in this Offering.

 rest of the release here:

Tue, 04/05/2011 - 18:48 | 1138940 Ray1968
Ray1968's picture

Thanks. I guess that 'splains it.

I'm not happy. Feels like holding onto a dog.

Tue, 04/05/2011 - 19:01 | 1138980 Pegasus Muse
Pegasus Muse's picture

Sprott's interview on CNBC today: 


Tue, 04/05/2011 - 21:57 | 1139469 Bay of Pigs
Bay of Pigs's picture

11 year bull run in PM's and those idiots on CNBC still don't "get it".

Assclowns or what?

Wed, 04/06/2011 - 01:10 | 1139833 suckerfishzilla
suckerfishzilla's picture

CNBC's mission is to keep the public in the dark about PM's.  If the FED put the brakes on QE3 there is still a huge lag between the events that jump started this bull market in metal and where the price should be adjusted accordingly.  Discounting the difference in the nation's money supply between 1980 and now market manipulation and in fact a historic manipulation of Silver going back to the late 1800's are all coming to a head and under scrutiny in the light of day.  Physical Silver investors are actually starting to see everybody else in their rear view mirror.  10000% or bust!

Tue, 04/05/2011 - 17:15 | 1138615 JollyRoger
Tue, 04/05/2011 - 17:55 | 1138748 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

agreed jolly.  silver and gold are what they are - ultimate extinguishers of debt.  they are not promises to pay, they are final payments.  sure wish more understood this fact.

Tue, 04/05/2011 - 17:57 | 1138760 DoChenRollingBearing
DoChenRollingBearing's picture

More people will understand this fact before long.

Tue, 04/05/2011 - 22:47 | 1139581 RockyRacoon
RockyRacoon's picture

Still available, 90% silver proof quarters from the Mint.

Price: $39.95 per set and $4.95 flat shipping for any size order.

The goobermint ain't going to take your numismatic coins!

There is a tad more than 0.90 ounce per set -- do the math.

2010 United States Mint America the Beautiful Quarters Silver Proof Set™

Tue, 04/05/2011 - 19:09 | 1138997 billhilly
billhilly's picture

 silver and gold are what they are - ultimate extinguishers of debt.  they are not promises to pay, they are final payments


Tue, 04/05/2011 - 16:40 | 1138482 emsolý
emsolý's picture

to transmisquote poor Irving Fisher:

"iPad prices have reached what looks like a permanently low plateau." - William Dudley dude

Tue, 04/05/2011 - 16:49 | 1138520 Sudden Debt
Sudden Debt's picture

It's in Dutch but: SAP GOES ALL IN ON THE IPAD.

I've also did the testings with Citrix to acces SAP and it works like a gemstone. SAP, CRM, BW... you name it you can use it.

Great tool for the salesforce. And with the catalogues soon to go online it's going to be the best on the road tool to cut costs on the order fullfillment process.

I know 3 big other international companies who are implementing SAP because of this choice.



Tue, 04/05/2011 - 17:32 | 1138664 EvlTheCat
EvlTheCat's picture

Good news! Thanks for the post and link!

Tue, 04/05/2011 - 17:52 | 1138741 Ray1968
Ray1968's picture

I'm leading an effort to implement usage of the iPad to doctors and nurses in my hosptial (a big US hospital). The iPad is cheaper than a PC or laptop and the user experience is superior. With VMWare virtual deskop already in place, we have fully functional PCs on the iPad. Citrix and SAP (Yes, we use Citrix on many clinical apps and we have SAP) will be the icing on the cake. It really is a nice machine.

Wed, 04/06/2011 - 01:55 | 1139883 A Nanny Moose
A Nanny Moose's picture

I've got a client that just delivered Win7+apps via XenDesktop (XD), and a Hospital/Clinical mgt company looking to deliver GE Centricity via XenApp/XenDesktop, and eliminate full desktops altogether. I've seen this entire desktop replacement paradigm fail before, but virtualization was the missing piece to the puzzle. There is a metric shit-ton of momentum behind the Deskop Virtualization Kool-Aid lately, with the usual drivers in place. This time it is truely a matter of IT departments getting control of, and enumerating their shit.

From a techical perspective (IT...not financial markets bullshit technical), CTXS has the most mature tool set in the App/Desktop virtualization world, and certainly seems well positioned to ride the BYOD tsunami. VMWare and others have some catching up to do.

Disclosure: No CTXS, SAP, or AAPL, but I did sleep at a Holiday Inn Express last night, and might BT some Effing D.

Tue, 04/05/2011 - 16:40 | 1138484 Dr. No
Dr. No's picture

Boom, Bust.  Keynesian economics.  Bernanke has focused on the new bubble: commodities.  Like housing before this one and dot-com before that, "froth" in the markets is labeled as healthy.  He is building the bubble and preparing for the pop.  Thats what they do.

Tue, 04/05/2011 - 16:41 | 1138489 sabra1
sabra1's picture

well, corn is golden in color!

Tue, 04/05/2011 - 16:41 | 1138490 RobotTrader
RobotTrader's picture

As predicted, JPM is totally unfazed from the breakout in PM's today.

A clean breakout in GLD and SLV is accelerating into Outer Space.....

And JPM is obviously hedged accordingly.

The gold and silver breakout can mean only one thing.

Things are getting better, not worse.

There is currently a run on Abercrombie and Fitch jeans, as the stock broke out today, up 10% on 3x normal volume which is bound to catch the eye of all the CANSLIM mo-mo monkeys.

And LULU made yet another new high today....

As for JPM, chart still looks OK to me.

Looks to me like the Weimar Party has started, and virtually everything is going to be skyrocketing in price.

Including bank and retail stocks.

Tue, 04/05/2011 - 16:44 | 1138499 tmosley
tmosley's picture

What, like Enron was unfazed, right up until they started collapsing?

Tue, 04/05/2011 - 16:54 | 1138529 Sudden Debt
Sudden Debt's picture

I hear you. I was assfucked when they went belly up and was totally blindsighted to see the facts. I kept buying untill it was scratched from the boards.


Tue, 04/05/2011 - 17:55 | 1138759 Calculated_Risk
Calculated_Risk's picture

Bruce is that you?!

Tue, 04/05/2011 - 18:25 | 1138870 Careless Whisper
Careless Whisper's picture

@ Robo

add the s&p500 to that 1 year chart of ur beloved jpm and u will see that jpm is up about 3% while s&p500 is up about 12%. it's a p.o.s. dewd. not to single them out, so, wfc, bac, gs, pnc, sti, all have relative weakness too.

Tue, 04/05/2011 - 18:43 | 1138919 MarketTruth
MarketTruth's picture

Robo is just trying to get others.... nevermind. Robo's BS is getting so predictable he'll next be touting that nuclear waste is a growing industry worth investing in, showing the usual BS chart of some company.

+++++ Robo, you really are getting overly predictable and exceedingly boring. +++++

Tue, 04/05/2011 - 21:40 | 1139430 akak
akak's picture

Robo = momo dodo.

Tue, 04/05/2011 - 17:12 | 1138532 hambone
hambone's picture

T - the current global CB policies are creating massive liquidity on one side of the ledger to use in speculation of liquid assets against the deflationary pressure of the RE / CRE / credit bust on the other.

Budget deficits so large now they can't they won't.  I'm betting we see stagflation and maybe "megaflation" or hyperinflation before we finally see the much awaited deflation.

Flations bitchezzz.

Tue, 04/05/2011 - 16:54 | 1138536 Internet Tough Guy
Internet Tough Guy's picture

Momotrader is our Gartman. See my post below.

Tue, 04/05/2011 - 16:52 | 1138530 Internet Tough Guy
Internet Tough Guy's picture

Gold getting brutalized pre-market, AAPL also getting crushed
RobotTrader - Tue, Apr 5, 2011 - 09:18 AM

Perhaps some of these ultra high risk investments will get slaughtered today?

Tue, 04/05/2011 - 17:04 | 1138578 DoChenRollingBearing
DoChenRollingBearing's picture

Ha ha!

Tue, 04/05/2011 - 17:41 | 1138694 lieutenantjohnchard
lieutenantjohnchard's picture

two-handed reverse slam dunk. you shook the backboard on this one.

Tue, 04/05/2011 - 17:26 | 1138644 Pladizow
Pladizow's picture

To: RoboTrader

You spend an aweful lot of time in a forum that thinks your a douche.

Tue, 04/05/2011 - 18:03 | 1138791 Debtless
Debtless's picture

golf clap. and another for the comment.

Tue, 04/05/2011 - 18:27 | 1138880 Careless Whisper
Careless Whisper's picture

i think robo is chill.

Tue, 04/05/2011 - 19:44 | 1139125 Votewithabullet
Votewithabullet's picture

Imagine. He has an opinion.Some of these pussies want to form a mutual  masterbation society.

Tue, 04/05/2011 - 17:50 | 1138729 lieutenantjohnchard
lieutenantjohnchard's picture

tard, so that you can live vicariously through the gains of silver and gold investors in the zh community imagine all the zh and jim sinclair types tonight popping cab corks over a steak and a wedge.

Tue, 04/05/2011 - 19:25 | 1139046 Richard Head
Richard Head's picture

Fuck off.  Your next post will be the complete opposite, and then you'll try to claim victory somewhere else regardless of what happens.


Tue, 04/05/2011 - 16:43 | 1138495 umop episdn
umop episdn's picture

Gold, silver, corn, crude, all more expensive. Now the price of transitories is going up too.

Tue, 04/05/2011 - 16:48 | 1138506 Dr. No
Dr. No's picture

Transitory inflation is right! if things keep going this way, there are going to be a lot more Transients walking around!

Tue, 04/05/2011 - 16:44 | 1138498 Dr. Porkchop
Dr. Porkchop's picture

A lot of people are going to be transitory if the price of gas keeps going up.

Tue, 04/05/2011 - 16:50 | 1138517 Cash_is_Trash
Cash_is_Trash's picture

brief, ephemeral, evanescent, fleeting, flying, fugacious, here today and gone tomorrow, impermanent, momentary, passing, short, short-lived, short-term, temporary, transient...

Ben, print some more adjectives you numb-nuts

Tue, 04/05/2011 - 16:55 | 1138540 Sudden Debt
Sudden Debt's picture

and the linked rise in foodprices.

People are really starting to notice the difference, even the biggest retards now see these price increases.

except Ben...

Wed, 04/06/2011 - 09:25 | 1140387 earnulf
earnulf's picture

But some of the other Fed presidents have said they buy food too!

Tue, 04/05/2011 - 16:48 | 1138508 franzpick
franzpick's picture

I would just love today's PM move to be the incipient beginning of a broader stampede out of fiat money, paper equities and bonds.  I think BenHubris has probably covered all his other bases except this one.

If he comes to get the PMs, we'll be moving to Liberty Park with tents, flags, food and lead, ready for anything.

Tue, 04/05/2011 - 16:47 | 1138513 DepthCharge
DepthCharge's picture

Bernanke on food inflation: "Let them eat ipods & ipads.  Prices are low."

Tue, 04/05/2011 - 17:10 | 1138590 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

hey depth, thanks for the snicker!  big ben is so correct - food and gas don't mean anything, the i-products value matters most!  as bugs bunny would say - "what a maroon"

Tue, 04/05/2011 - 16:47 | 1138515 hedgeless_horseman
hedgeless_horseman's picture

For all those waiting for Dennis Gartman's permission to jump in the pool (at all time record highs) it is finally here...

I miss the WSJ's old Darts versus the pros feature (the darts usually won). 

Tyler, let's revivethe concept.  How about selecting three Zerohedge commenters and pitting their investment picks against pros like Gartman, as well as something random like throwing darts at the WSJ stock quotes page, but more in line w/ current technology and your site's low humor.  Can we convert Tokyo radiation levels into stock ticker symbols?

Tue, 04/05/2011 - 22:24 | 1139527 oddjob
oddjob's picture

Gartman is the most vile shill put out there,this guy makes MHFT look like little red riding hood.

Tue, 04/05/2011 - 16:51 | 1138525 speedy
speedy's picture

It's a good job you can't eat gold. At those prices who could afford it!

Thank god what you can eat is not ...  errrr.... what was that about corn?

Tue, 04/05/2011 - 16:59 | 1138563 bania
bania's picture

The latest Ice Age was transitory too (in geological terms).

It's just perspective.

Tue, 04/05/2011 - 17:02 | 1138567 tek77blu
tek77blu's picture

This may be the next leg to take gold to $1600+ and Silver to $40+..the miners may end up going wild here!:

Tue, 04/05/2011 - 17:23 | 1138639 SilverRhino
SilverRhino's picture

$40 Silver is going to be a MASSIVE resistance point as banks fight it tooth and nail.  I expect some kind of raid tonight in London's GLOBEX.   Ag will probably break and close over $40.00 next week.

Tue, 04/05/2011 - 17:58 | 1138777 DoChenRollingBearing
DoChenRollingBearing's picture

We'll keep careful watch.

Tue, 04/05/2011 - 18:22 | 1138860 Long-John-Silver
Long-John-Silver's picture

I hope they do print more counterfeit Silver contracts and chum the market. We need another good feeding frenzy on buyers dip and chip.

Tue, 04/05/2011 - 17:04 | 1138569 Max Cynical
Max Cynical's picture

Can anyone explain what happened with PSLV today? Thanks.

Tue, 04/05/2011 - 17:29 | 1138655 Pladizow
Pladizow's picture

It trades at a premium to NAV and the PHYS is set to issue shares, so the thought is the PSLV will also - I think?

Tue, 04/05/2011 - 18:15 | 1138834 franzpick
franzpick's picture

Jessie/ may cover it soon and probably relate today's action to a contraction of Sprott's PSLV premium of 19% over NAV on 3-31:


Tue, 04/05/2011 - 17:05 | 1138575 cxl9
cxl9's picture

Wow. $40 silver. A $4 cup of coffee doesn't seem so outrageous now. Behold the power of the printing press.

Tue, 04/05/2011 - 17:05 | 1138579 topcallingtroll
topcallingtroll's picture

Before bernanke even considers qe3 he will make sure inflation speculators are crushed. It makes no sense to go straight to qe3 without at least a minor correction in the risk on trade.

Tue, 04/05/2011 - 18:02 | 1138788 DoChenRollingBearing
DoChenRollingBearing's picture

An interesting call, top.  That would be a great time to BTFD!

Tue, 04/05/2011 - 18:27 | 1138876 franzpick
franzpick's picture

That's too easy; so the PM market won't give that chance.

The top half of a parabola is where everybody on board stays in their seats while late boarders try to jump aboard the departing train. 

Tue, 04/05/2011 - 20:59 | 1139336 ZapBranigan
ZapBranigan's picture

Good point...excellent analogy.  Any future dip will see astronomically high premiums that will basically negate the measure of pullback in spot price.

Tue, 04/05/2011 - 18:32 | 1138899 MachoMan
MachoMan's picture

Planning on it. 

Tue, 04/05/2011 - 17:11 | 1138591 max2205
max2205's picture

Transitory=bad to worse

Ben's got a way with words. Words with many meanings is a hedge. what a dick

Tue, 04/05/2011 - 20:33 | 1139266 Zero Govt
Zero Govt's picture

if anyone sees any meanings in Bens management-speak drivel they've a vivid imagination ...Bernank is a meaningless, purile crone.. there's more substance in a 30 second Tampax TV advert than the entire career of any central bankers

Tue, 04/05/2011 - 17:12 | 1138603 css1971
css1971's picture

Sounds like a deflation signal to me.


Tue, 04/05/2011 - 17:15 | 1138607 web bot
web bot's picture

I just want to point out a couple of factors that we need to keep in mind when we think about this living Hell we are about to enter.

When the Chairsatan spoke yesterday, he like all of his ghouls spoke about "transitory" inflation in terms of "wage and labor" costs increasing. These are the proverbial canaries in the coal mine. So from their demented position within the 9th circle of Hell, as long as wages don't go up, there is no inflation.

What the everyday lost soul is seeing in terms of rising food and energy costs is the #uckin destruction of our standard of living... a direct result of monetization of the debt. This is a direct result of zero interest money provided to the financial prostitutes on Wall Street that have in turn taken it and created a commodity bubble, which in turn is destroying our standard of living through higher prices and currency debasement

As long as wages don't rise and capacity slack exists, we'll continue to see this along with the compression of the lower and middle classes into one eventual mass. The Chairsatan ignores rising prices because it is the effect of his QE 1&2 transgressions. To admit this would cause people to hate him more. The moment wages start to rise, this is when the canaries will be singing inflation, and we are then on to another tune.

Once QE2 is over, we are into a major stock market crash and PMs and the whole commodity market is coming down. The explosion in PMs and commodities will be Act 2 as a result of collapse of the US dollar. This will result in hyperinflation... a very different phenomena due to the velocity of money moving at robot speed seeking safety.

How the #uck did we ever get into this mess.

Tue, 04/05/2011 - 17:22 | 1138630 cossack55
cossack55's picture




Sorry, junked you by accident

Tue, 04/05/2011 - 23:23 | 1139657 Bob Sponge
Bob Sponge's picture

Correct. I wish the American public would understand that we have gone downhill since the Fed was created in 1913. Most people don't know anything about the Fed or who Ben Bernanke is.

Tue, 04/05/2011 - 17:21 | 1138632 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

i blame peeps using banks and trusting the msm.  i bailed on bank useage about 1.5 years ago.  i have not missed them a bit.  yes, it's a pain to get a mo to pay bills, but at least i do not support the banks in any way if i can help it.

let 'em fail!


Tue, 04/05/2011 - 18:29 | 1138886 franzpick
franzpick's picture

Buy a coin, kill a bank.

Tue, 04/05/2011 - 17:26 | 1138645 cxl9
cxl9's picture

When QE2 ends, all that printed money is still out there. It doesn't just disappear. As the eloquent Philadelphia mobster John Stanfa once observed, "You can't put the shit back in the dog." Commodity crash? I don't think so. A small decline, perhaps, until QE3 starts up. In any case, I would welcome a crash as an opportunity to load up again. Endless money-printing is their only option at this point. If Ben won't do it, they'll replace him with someone who will.


Tue, 04/05/2011 - 18:07 | 1138810 DoChenRollingBearing
DoChenRollingBearing's picture

As the eloquent Philadelphia mobster John Stanfa once observed, "You can't put the shit back in the dog."

Thanks for the priceless quotation!

Tue, 04/05/2011 - 23:22 | 1139659 RockyRacoon
RockyRacoon's picture

That's too easy.   Dogs eat their own shit -- so it CAN happen.

Wait til the Fed gets a taste of what they've been spreading on our lawns.

Tue, 04/05/2011 - 18:46 | 1138932 web bot
web bot's picture

We're in agreement, just not in the order that things will happen.

When QE2 ends, we are looking at $100 Billion worth of financial heroin being "gone" from the financial system "each month". $100 Billion is the same as 100,000 stacks of $1,000,000. That is some amount of money simply gone from the system.

If you look at how much QE2 has been injected into the system, it has not been an even $100 Billion each month... I believe that we have seen almost $300 Billion in the last 2 months alone... and guess how the markets have been moving in the last 60 days.

I am long silver but currently in cash, waiting for the correction. PMs are going to the moon, but it will happen in Act 2 and not as many people are expecting. There is no logic to the markets.. which tells me the markets are being goosed for a major correction.

For the record, this is not meant as investment advice

Tue, 04/05/2011 - 19:38 | 1139080 Hearst
Hearst's picture

Web bot I hate to break it to you but if you are 'long silver but currently in cash' then you are really long cash and short Silver.  I wouldn't wait to long before turning that cash to physical.  


The 'correction' in PM's happened in 2008.  I was there.  It really sucked.  But I didn't sell an ounce.  With all the attention Silver is getting (JPM lawsuits, CFTC Silver investigation & position limits) and everything in beteen, any future 'correction' will be akin to the ones we currently witness where the CME hikes margin requirements - shallow and short lived.  

Tue, 04/05/2011 - 21:58 | 1139372 web bot
web bot's picture

You did see the long physical part.

If I were you, I wouldn't move getting in at $4.00. You're sitting very, very nice.

I made well when I liquidated (Sprott). It all depends what you think the future holds... the markets are being goosed with free money and the US has not quite reached the tipping point yet. I've put my money where my mouth is and am waiting for the correction so I can load up on Sprott.



Tue, 04/05/2011 - 17:19 | 1138623 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

what a fun day this has been.  i turn on the computer and launch ol' k-cast.  silver at 38.77.  a glance just a few minutes later showed 38.82.  again, a bit later 38.96.  then i saw the 39.04!  my first thought was then that bumbling ben opened his mouth and said something stoooopid again.  sure enough, he did!

i do wish peeps would quit worrying about the value of their metals in fiat.  it doesn't matter!  a silver dime buys a high quality loaf of bread today.  just enjoy the deflation real money is expiriencing while the fiat inflates away.

the only reason to consider the pm's alleged fiat price is to buy the dips.  that's it.  otherwise fiat value is about as worthless as bumbling ben's words he spews forth.


Tue, 04/05/2011 - 17:31 | 1138661 hambone
hambone's picture

$39.33 now - just saying

Tue, 04/05/2011 - 18:02 | 1138784 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

now to see if there is a price "adjustment" when the alleged asian market opens in a few.  usually there is.  we'll see in a few minutes now.....

Tue, 04/05/2011 - 18:40 | 1138916 hambone
hambone's picture

$1457 and $39.25 - I'm looking for the follow through move to happen tonight in Asia and EU before we come up to bat again w/ new BS about finding Jezus and ending QE.

Tue, 04/05/2011 - 20:18 | 1139230 Stumpy
Stumpy's picture

I hope my coin dealer will still offer me that sweet deal next thursday: 25$ CAD for Morgan dollars. Man do those look nice!

Tue, 04/05/2011 - 23:32 | 1139669 Bob Sponge
Bob Sponge's picture

Beware of fake Morgans. The Chinese are faking them.

Wed, 04/06/2011 - 00:44 | 1139794 Boxed Merlot
Boxed Merlot's picture

a silver dime buys a high quality loaf of bread today...


Intrinsically valuable coinage will always trump ill conceived promises to pay, regardless of the material the're printed on.


Timmy bills promising to pay a tax, (interest), to the holder (the "owners" of the bis), of the slave autioned promises issued by a bereft US government is the epitomy of insanity.  A country's populace that beleives itself to be "free" under these auspices is in a perpetual drunken stupor.  imo.

Tue, 04/05/2011 - 17:19 | 1138627 sundarb
sundarb's picture

Non-linear market reacting to the monetary Doctor of the linear quantity theory of money!

Tue, 04/05/2011 - 17:33 | 1138654 bbq on whitehou...
bbq on whitehouse lawn's picture



From anothers posts:

March 24/1998.

To hold a dollar backed oil system, the governments agreed to create a liquid "free" gold market. They did this by selling much gold over years and allowing it to rise to $200 US. Then, as now, free dollar reserves could go into gold. As the US treasury did no longer back US$ with gold, it hurt not the currency. In a very real way, the dollar went onto a "oil standard" to replace the old "gold standard". As $180/$200 was to be the limit, for gold ( the BIS set at $180 then ) , in 1978 the US did bomb the gold when it went to $250. The market went out of control and rest is history.

Given that oil was at $12 and gold at $300 it is possable to price gold at between $1800/2000 today with oil at over $120.

We will see how fast the momo's catch on. I  think in 3 years because they are slow to think but fast to respond.

Tue, 04/05/2011 - 17:30 | 1138660 jkruffin
jkruffin's picture

New words Benny Bubbles has created since 2009

Quantitative Easing

Jobless Recovery

Wealth Effect



What's the next fantasy word? I'm sure I missed a few he created as well.

Tue, 04/05/2011 - 17:37 | 1138679 bbq on whitehou...
bbq on whitehouse lawn's picture

Under survey. :P


Tue, 04/05/2011 - 18:33 | 1138894 franzpick
franzpick's picture

The Recoveryless Job

The Anarchy Effect

Tue, 04/05/2011 - 17:32 | 1138666 Catullus
Catullus's picture

Transitory for the non-morts.

Tue, 04/05/2011 - 17:36 | 1138671 Ricky Bobby
Ricky Bobby's picture

Hey no Spalding_Smells, I guess we will have to wait for the obligatory 24 hour sell off before another ramp up. Not a troll to be found. 

Res publica mortuus est, vivat imperium.

Tue, 04/05/2011 - 18:10 | 1138813 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1450

Tue, 04/05/2011 - 18:49 | 1138942 lieutenantjohnchard
lieutenantjohnchard's picture

very clever. i like it.

Tue, 04/05/2011 - 17:36 | 1138672 PulauHantu29
PulauHantu29's picture


I see no sign of gold, oil silver, palladium or platinum "reverting" with just about every gubberment showing subtle, if not gross mischief.

When six month spasses when GS CEO Blankfein does not take another record $40 Million Bonus, then I will think about possible "reversion."

Tue, 04/05/2011 - 17:41 | 1138698 Arkadaba
Arkadaba's picture

Came across this presentation today (very long) on potential currency collapse. I like the presentation of facts, historical precedents and non-technical language. Plan to forward it to a few people:

Tue, 04/05/2011 - 17:57 | 1138758 Ying-Yang
Ying-Yang's picture

Stanberry is fraud and a PUD. Google him.

Tue, 04/05/2011 - 18:17 | 1138802 Arkadaba
Arkadaba's picture

That may be true - I don't know but will google - but they/he did an awesome job of pulling together some economic data, theory and history in a way non-financial people can understand. Almost everything he presents has been covered on ZH at some point.

Edit: The fact that the SEC actually prosecuted him .... hmmm .... might mean he is worth listening too.

Tue, 04/05/2011 - 18:29 | 1138888 hambone
hambone's picture

Much more educational to watch Chris Martenson's Crash Course.  It's an education first and hope that w/ the knowledge you'll support advertisers there...well worth the 3hr videos.


Tue, 04/05/2011 - 18:05 | 1138800 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

the s-bury reports do one thing - attempt to sell you something.  i've seen several.  never learned too much that i didn't already know.

Tue, 04/05/2011 - 20:01 | 1139184 hambone
hambone's picture

So what is he selling?  PM's? 

Tue, 04/05/2011 - 17:50 | 1138725 Catherine007
Catherine007's picture

Anybody any thoughts on Martin Armstrong's piece “how and when”. He mentions that in case gold blasts to new highs through $1,500 it might be the end of a phase transition and would lead to a low in 2015. This statement  seems in contradiction to what is mentioned earlier in the piece: gold could break out of the channel, retest the breakout level and go to 5k or 12k by 2015-2016. 

Tue, 04/05/2011 - 17:51 | 1138740 Prof Gulliver
Prof Gulliver's picture

Don't worry. Ben's plan is if inflation gets hot, he'll flood it with seawater.

Tue, 04/05/2011 - 20:49 | 1139299 Zero Govt
Zero Govt's picture

inflation is already running hot but Ben's sitting on it playing it cold like the good crone he is.... but everyone can see the smokes started visibly rising from Bens arse, how much longer can he sustain his cool veneer before the beads of sweat on his forehead blows his cover??? 

Tue, 04/05/2011 - 18:02 | 1138783 Bam_Man
Bam_Man's picture

Silver outperformed gold in the first quarter, rising 22 percent while gold rose 0.7 percent.

And some cretins continue to insist that "there is a bubble in Gold".

Up less than 1 percent in a quarter. What kind of "bubble" is that?

I know bubbles. I have seen bubbles. And that is very un-bubblelike. We haven't even gotten to the "bubble phase" yet. You will know it when you see it.



Tue, 04/05/2011 - 18:36 | 1138907 hambone
hambone's picture

C'mon Bam,

of course gold and commodities are in a bubble.  They rise conversely to bad fiscal governance, budgets, and policy. 

Ok, so the real bubble is in the poor governance and record massive printing.  But absent a sudden change of heart ("on second thought, we should have a balanced budget and avoid unfunded liabilities and deal w/ the deficit, declining energy sources w/ rising demand, and demographic shifts) the bubble looks ready to keep on blowing. 

OK, those expecting the commodity bubble to continue expect the printing to continue pumping the air into the bubble unabated.

Wed, 04/06/2011 - 00:30 | 1139774 Boxed Merlot
Boxed Merlot's picture

Silver outperformed gold in the first quarter...


In ancient days, it was silver that was exchanged for deeds of trust for real estate.  Granted, the deeds, (scroll/paper) were still required to be kept in "safe" keeping, (read "trust") but the purity and weight of AG was the typical unit(s) of barter for the transaction.

Tue, 04/05/2011 - 19:02 | 1138983 Bansters-in-my-...
Bansters-in-my- feces's picture

"Transitory Bitchez"....
FUCK YOU Benny peice of "transitory shit"

Tue, 04/05/2011 - 19:16 | 1139015 NidStyles
NidStyles's picture

Only a matter of time before people are tearing apart their iPad's to pull the silver out so they can afford to eat.

Tue, 04/05/2011 - 19:18 | 1139027 sudzee
sudzee's picture

The little guy is now like the Hunt Bros. except that we are many with smallish investments in physical silver. Strong hands holding all the physical out there will eventually kill the JPMorge and HSBC paper shorts.

Tue, 04/05/2011 - 19:54 | 1139149 Stockmonger
Stockmonger's picture

Don't worry, inflation is "contained" in the same box that subprime was.

Tue, 04/05/2011 - 20:42 | 1139285 camoes
camoes's picture


Tue, 04/05/2011 - 22:08 | 1139356 Zero Govt
Zero Govt's picture

it might be funny if it wasn't coming from lefties ...there's nothing less funny than socialists (total failures) like John Stewart taking the piss out of something like Gold and Beck/Fox (the latter hammering the leftie networks in the ratings war)

how are Democrat run areas like Detroit and Chicago doing after decades of lefties promising equality for all, promising prosperity by sharing (others peoples) wealth around and $billions in public subsidies? ...still no-hope shit holes which is all socialist politicians have ever delivered

You might find the ever more desperate John Stewart and other ever more vacuous left wing 'comedians' on ever declining leftie media stations funny but the biggest fuking joke is the always failing human stink bombs that are socialists

Tue, 04/05/2011 - 23:42 | 1139688 RockyRacoon
RockyRacoon's picture

You have the right to see Stewart and a fella like Colbert in the light you wish.   I find them both funny as hell.   Neither is loathe to denigrate a leftie when the occasion merits it.   If those pesky righties could get a solid chorus line they'd not be such easy targets.   The two "comedians" are definitely an acquired taste.   I find the comedians on Fox to be just as much of a hoot to watch.

Tue, 04/05/2011 - 23:15 | 1139641 FreedomGuy
FreedomGuy's picture

How do we invest in corn?!? I don't think I want to own the physical outside of enough for a barbeque or two.

Since corn is at an historic high can we now stop the damn subsidies? At a $1.7trillion deficit maybe we could stop subsidizing a product at its all time high price?

Wed, 04/06/2011 - 00:21 | 1139753 SilverRhino
SilverRhino's picture

39.48 Ag bitches!! yeehaw!

Wed, 04/06/2011 - 00:26 | 1139769 Yohimbo
Yohimbo's picture

geez ,  I can barely afford corn nuts as it is.


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