The World No Longer Needs Raw Materials To Grow

Tyler Durden's picture

It would appear from the chart below, that the world, in its infinitely capable manner, has not only managed to create 'wealth' from thin air, but can 'expect' growth in the future with no apparent impact on the price of the raw materials that will be needed to create that growth. Unless, of course, the growth that equities are discounting is central bank assets and joblessness...


For 14 months, the growth being priced in to stocks has had no pricing impact on all those wonderful raw materials... It seems LTRO was a game changer and hope is indeed a strategy once again...


Source: Bloomberg

(h/t @Not_Jim_Cramer)

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DJ Happy Ending's picture

Makes sense, we don't even need paper or linen to print fiat.

Edward Fiatski's picture


Ben Bernanke is a quadruple triple agent for the WWF and/or Greenpeace.

zorba THE GREEK's picture

Either CRB is going up, or S&P is coming down. My guess is both.

CH1's picture

Why not? I haven't seen Reality's face for a long time. I don't think it exists anymore.

Edward Fiatski's picture

They meet in the middle, make up & kiss again.

augustusgloop's picture

benjamin button bernanke. 


strange, sounds a lot like another movie from the mid 2000s--housing not needing personal income to rise 

ebworthen's picture

I was hoping for 2,000, but I'll take 5,000.

rqb1's picture

Thanks, I like the doctor's work.

richard in norway's picture

Im going to spoil the doomer party here, which is strange cos I'm an great doomer myself

But most of my discretionary spending this year has been on online services, and I'm not just talking about porn! Lol. I'm talking about software and media. I buy lots of music but I can't remember the last time I bought a cd, used to buy software at the store but now its all online. So maybe just maybe this ain't as weird as it looks

MoneyThangs's picture

Thank god people there are people like Ben Bernanke to turn this boring, uneventful world into an exciting fairy tale unicorn ranch

TheFourthStooge-ing's picture


Thank god people there are people like Ben Bernanke to turn this boring, uneventful world into an exciting fairy tale unicorn ranch

...and what makes it even better is the ranch has two types of unicorns: the type that shits skittles and the type that shits 24k solid gold nuggets.

And they fly!

ultimate warrior's picture

Central Planners have discovered that all one needs to do is debase currency and you will create growth. Just look at Japan, USA, and Argentina. Three wonderful examples of debt creating wealth and prosperity.  

disabledvet's picture

not disagreeing with you but we MIGHT...and i stress MIGHT be discovering "debasing a currency is not nearly as easy as people think." (ah Europe talking about the collapse of the dollar..was it just three years ago?) the 90's was not that long ago and as i recall them "that CRB was smellin' the glove" for damn near a decade...if not thirty. with labor basically "free" in the USA there's a lot of "ruthless cost cutting" already done...but not priced in. (God forbid if suddenly there's some job growth.) when you factor in the bulk of commodities rely on the American consumer for support...well, let's just say "Wall Street not only stole the world's lunch money but now they're eating ours and the world's lunch too." i'm trying out the whole "deflation thing" (with real money...MY money) right now even though it seems PURELY theoretical. (i'm into that kind of stuff sometimes.) forget when I see it...when YOU see it is "when a deflation is happening." it is possible that the economy suddenly gets on a solid growth trajectory here. "it should be growing 10-12% a year" with trillion dollar deficits. needless to say "it's a problem of not spending enough" according the media clowns...and amazingly the Chairman of the Fed. trust me when i tell you "Government does not disagree with that." at least...not the FEDERAL Government.

slaughterer's picture

I see a compression trade here--or maybe not.

piceridu's picture

Men, flush your Viagra down the toilet...hooray for unicorn growth!

realtick's picture

it's a broken correlation

eigenvalue's picture

That's why gold and silver will crash in the coming weeks. Jim Sinclair will be proven a shill and pumper and dumper once and for all. $4000 gold? It won't happen! Gold will never see $1800 again let alone $4000.

shuckster's picture

I agree with you. I think the market needs to crash and gold needs to fall in order to return some reality to this market. Gold at $1800/oz suggests a doubling of the money supply since 2008 when in reality it has gone up by about 50% per the debt. Eventually, all money will flow back into gold and silver as currencies collapse, but I think that collapse will be onset by a market crash and a commodity crash. In other words, temporay deflation followed by rapid inflation

klockwerks's picture

I hope your  right about gold and silver. I would load up on some of both. It has floated around some but I keep hoping it continues to go down. Shuckster is closer on the fact but who knows. The other commenter is just a troll who owns neither gold or silver. Probably doesn't own anything

TrumpXVI's picture

In the above scenario, which very well could happen, there will be NO physical supply available.  Don't plan on loading up on anything.  It will be GONE.

shuckster's picture

It all depends on Fed policy. If the Fed takes a breath, I think gold could conceivably crash back to the mean. Keep in mind gold was what, $400 an ounce in 2004... that doesn't strike anyone as odd that it would go from that to $1800 in ten years. I suppose since gas was $1.50 back then, and everything else was about half as much, its possible. But I still believe that bubbles can form anywhere, even so called bubble proof assets like gold

TheFourthStooge-ing's picture

eigenvalue said:

Gold will never see $1800 again let alone $4000.

If I follow you correctly, you're saying that the dollar will become totally worthless virtually overnight, and fairly soon. Logically, I suppose you're correct, since nothing would be priced in dollars anymore.

I don't understand why you think it would happen so quickly, though. I mean, anyone owing a debt denominated in dollars would find at least some utilitarian value in enough dollars to settle their debt. Aside from that, though, nobody really needs the dollar.

The dollar could drop that quickly if there were a global instant debt jubilee. For such a thing to happen fairly soon, though, is a rather extreme prediction. Sure, it's not nearly as extreme as someone saying that the current dollar system has a long term future and, within that context, gold would never see $1800. Nevertheless, predicting a total debt jubilee so soon, before every attempt at kicking the can was tried, is, at the very least, moderately extreme.

exartizo's picture

ummm.. I'm guessing the point here is where is the "raw materials" growth to justify all that S&P 500 growth?

...yet another nice chart exposing the Massive Manipulated Market (alliteration intended) Fraud And Ponzi that is The United States Equities Markets.

Theta_Burn's picture

When they can pull oil, water, and food from their ass, I'll take back all the disparaging comments i ever made.


dark pools of soros's picture

sounds like a good night in Tijuana

Hongcha's picture

Yep; or an upstairs bar in Patpong.

Cloud9.5's picture

But, the sun comes up the next morning and you discover you have a whole new set of problems.

Mr. Magoo's picture

When the globalists initiate their plan to depopulate the 99% they can have plenty of growth without using up an excessive amount of raw materials

Everyman's picture

Sung to the tune of "Lucy in the Sky with Diamonds"


Bennie at the Fed with Printers

Picture yourself in markets in chaos
With infinite fiat and hopium pipes
Somebody calls Goldman, he answers intensely
They Guy with the Printing Machines

Fiat currency of promises and dreams
Debt towering over your head
Look for the man with his ink stained hands
And the dollar’s is done

Bennie at the Fed with Printers
Bennie at the Fed with Printers
Bennie at the Fed with Printers

Follow him down to an ocean of debt
Where the next generation is told to eat shit and die
Bennie, he smiles and you drift past the debt
That grow so incredibly high

CNBS pumpers appear on the screen
Waiting to bullshit away
Bend over and get ready for a shaft
You future’s gone

Bennie at the Fed with Printers
Bennie at the Fed with Printers
Bennie at the Fed with Printers

Picture yourself in an insolvent country,
With worthless bonds and treasury bills
Suddenly someone is there with the bill
The next generation with homicidal eyes

Bennie at the Fed with Printers
Bennie at the Fed with Printers
Bennie at the Fed with Printers


Catflappo's picture

I've not heard of a narcotic called BFP though?  Am I missing something?

haskelslocal's picture

Place your bets.


CRB up


S&P down


shuckster's picture

I'm guessing S&P down. This is similar to 1929. The precursor to the big crash was a crash in commodity prices...

Lord Of Finance's picture

You gotta see that the S&P is going down. That will be a good thing for gold/silvers next major leg up. With a "correction" in the DOW/S&P catching down to the materials, we will see gold hit an then go clean through the last major gold price low of $1527.00. .

     Gold hitting $1425.00 or so? Definitely a good possibility. So It is something to watch. Thankfully, for me, it is the only thing I need to watch. Bond rates will sink a little again, so if you are just waiting in short term bonds, then we have nothing to worry about there. I see this joke of a market surge finally breaking soon and then watch the $1527 gold level, and it should drop another $100 from there after the cautious buyers are rinsed out and then we have a great opportunity to buy. We know the big boys have finished selling for now so the support at 1527 is something to keep an eye on.


Make no mistake about it. Silver and gold will be hurtin' for the next few months.



hairball48's picture's the "Red Pill" for you?

Kirk2NCC1701's picture

Roll up your sleeves and plant something, doomsday be damned!

Glass Seagull's picture




Now that all the workers in America have been laid off, corporations need an aditional margin tailwind from cheaper commodity inputs.     




shuckster's picture

There's an interesting disparity between the market and the dollar - usually when the market goes up, the dollar goes down. However, recently, the dollar has been moving up with the market. This to me suggests that the market needs to move down, and quickly in order to get back to its proper trajectory. This has nothing to do with being bearish or bullish

ekm's picture

One more thing to remember: FOOD.


Food cannot, I repeat CANNOT, grow abundantly if there's a an artificial scarcity of crude oil. Diezel is needed for the machineries and crude is itself needed for the production of fertilizers.


FOOD is becoming a problem. That's when you get riots at grocery stores.

Oldwood's picture

We don't need no stinking food. We got Jenny Craig!

sitenine's picture

That reminds me of a terrible joke that I will share with you.


Q: Why do lesbian women find it so difficult to go on a diet?


A: You can't eat Jenny Craig when you have Mary Kay of your face.

Kirk2NCC1701's picture

I can promise you, they won't be eating out as much when TSHTF.
Many will fluff for food. Simple reality, not 'misogyny'.

A Nanny Moose's picture

Food cannot, I repeat CANNOT, grow abundantly if there's a an artificial scarcity of crude oi, under current agricultural methodologies. Diezel is needed for the machineries and crude is itself needed for the production of fertilizers, using current agricultural conventional wisdom.

Fixed. I suggest looking into permaculture methods, etc. There are alternatives.

enloe creek's picture

then why am I able to eat lobster and hopefully ( non horse) steak at red lobster for $10 after my coupon
productivity and low demand is deflationary in this case but it won't last if red lobster goes bankrupt

Critical Path's picture

The world no longer needs many things in these new uncharted waters:

We don't need people out working to in turn be "consumers"

We don't need consumers for corporate profits and stock prices to rise

We don't need revenue to be in line with our expenses

We don't need to eat food (see CPI)

We also don't need heating or transportation (also see CPI).

We don't need to be concerned with what passes for law for some of us in society and what its passes for the rest of us.

We don't need college graduates entering the work force to service their student loans.

And we certainly don't need paper to print (see this article).


Recently we learned:

We don't need food labeling to represent what we're really eating

We don't need to worry about insiders selling-to-buying ratios at historical levels

Most of all, we don't need reality or honesty