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Ben Wins - Who Loses?

Submitted by Bruce Krasting on 09/14/2012 17:37 -0400

The most significant market adjustment since Bernanke used the "Unlimited" word is not in stocks, bonds or PMs. It's in inflation expectations. Have a look at this chart. Focus on the incredible spike in the past 24-hours.

The sick part of this is that if Bernanke saw this graph, he would cry with tears of happiness. This is exactly what he was praying for. Ben thinks that inflation is a good thing. That it will cause demand to be pulled forward as people realize that things are going to cost more tomorrow than they do today.

I suspect Ben is right. Higher inflation expectations in the US will filter around the globe. Post the extraordinary steps Ben took yesterday, people will be stocking up on "stuff". Things like rice, flour, cooking oil, soy, wheat and sugar. If you can eat it, buy it now. It will be more expensive in a month. While your at it, fill up the gas tank, the price is going up next week and every week for the next few months.

Ben doesn't care about that stuff. He ignores this altogether. Maybe he's right, after all, food and energy are really not so important to the 7Bn folks who happen to be passing through this decade, right?

Some day the history books will study this period of time and ponder how so many people gave up control of key elements in their lives without ever having a say in the outcome. How could one person have gotten so powerful? Somehow we have anointed Ben as the new God. An omnipotent decider that is nether elected or whose power is somehow checked. Don't think for a minute that he's one of those benevolent gods, he's not.

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Sat, 09/15/2012 - 10:59 | 2798505 illyia

What a fascinating comment. Enjoyed the vids too.

Sat, 09/15/2012 - 07:31 | 2798261 bankruptcylawyer

Funny how mitt missed the opportunity to speak after thursdays announcement. ......if he shows ben the door it will will only be to replace him with someone who will lick wall streets ass even more.

Probably with an overnight devaluation. Let me guess....hooray for gold.
Greagreat....gold will protect the great goldbug class of people most of whom are already wealrhy......it wont provide leadership out of a credit bubble. It wont stop decades of theft of savings by debasement. It wont stop mitt from changing the ss payment index to a fixed payment so he can inflate away ss.

And gold will not stop the us dollar from losing its exclusive reserve status. Only war can possibly accomplish that. And war is about black gold. Far mor valuable than yellow stuff.

Sat, 09/15/2012 - 04:25 | 2798178 The Alarmist

"If i would have to choose between Obama and Mittens i would chose Mittens. Obama has not done anything of use so far with his 4 years in office."

Reminds me of the old zen parable ...

"One day while walking through the wilderness a man stumbled upon a vicious tiger. He ran but soon came to the edge of a high cliff. Desperate to save himself, he climbed down a vine and dangled over the fatal precipice. As he hung there, two mice appeared from a hole in the cliff and began gnawing on the vine. Suddenly, he noticed on the vine a plump wild strawberry. He plucked it and popped it in his mouth. It was incredibly delicious!"

I'll leave it to you to decide if Romney and Obama are the Tiger and the Cliff or the two mice. What I want to know is,

Do we at least get a strawberry out of this shitty deal?

Sat, 09/15/2012 - 07:42 | 2798270 Griffin

I would say that Hussein and Mitt are the mice. The abyss you are falling into is the world of international bankers. The Tiger is in your mind, the fear, pushing you into the abyss.

The strawberrys are a stimulus that will make you feel a little better on the way down, but once you fall to the bottom of the abyss, you will be there for good.

And there are no strawberrys down there.

Sat, 09/15/2012 - 10:42 | 2798474 Sweet Chicken