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Commodity Levitation Since Last FOMC - Inflation or Growth?

Tyler Durden's picture




 

In the month since Bernanke extended ZIRP til mid-2013 and explained that he really is not out of bullets, we thought it interesting to look at commodity (or perhaps real currency) movements since then. It is rather notable that Dr. Copper, oh so notably used by the cognoscenti to explain global growth remains miraculous, has underperformed the potentially more critical exchangeable stores of value such as Gold, Silver, and Oil. Even more surprising, and potentially signaling the disaster that is Europe, the USD (based on the Dollar Index) is stronger by 2.5%.

Chart: Bloomberg

 

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Thu, 09/08/2011 - 11:27 | 1646308 Cdad
Cdad's picture

Go ahead and kill the dollar yet again, Mr. Bernanke...and let us hasten the end of your reign of monetary terror.

Thu, 09/08/2011 - 11:36 | 1646355 takeaction
takeaction's picture

Tyler...Perry grabs Dr. Paul.....could you post this for the world to see.....

GENTLEMEM......we have a problem.  (Off Topic)  PLease look at this.  During commercial break on last nights debate it looks like Rick Perry grabs Ron Paul and threatens him.  Please look!  GET YOUR DIRTY HANDS OFF RON PAUL!! (Note in stories around the net Ron Pauls bodyguard came to the scene, you see him with hand on podium, back to us)  We are waiting for what was said.  RON....SLAP THAT BITCH!!

 

http://media.zenfs.com/en_us/News/Reuters/2011-09-08T022735Z_01_LOA29_RT...

Thu, 09/08/2011 - 11:51 | 1646401 PY-129-20
PY-129-20's picture

I don't know - I watched a part of this debate. I found Perry frightening. Not because of this, but the way he delivered his speech.

Another thing - how much time did Paul get in this discussion? At the end I had the impression that Paul wasn't asked that often.

It's not upon me to decide, but I hope that Perry won't be your next president. Would love to see Ron as the next American president.

 

Thu, 09/08/2011 - 14:14 | 1647027 boiltherich
boiltherich's picture

Perry is a frightening man, a total fascist, but worry not too much because even Obama is a better choice than yet another fucked up governor from Texas.  Obama might be a Carteresque failure, but America is not going to elect another neoconman. 

Thu, 09/08/2011 - 11:29 | 1646314 alien-IQ
alien-IQ's picture

don't worry about the dollar. as soon as the chairsatan speaks today, the dollar will surely plummet as demanded by his mandate to render it worthless ASAMFP.

Thu, 09/08/2011 - 11:33 | 1646336 SheepDog-One
SheepDog-One's picture

Dollar index stronger by 2.5% but throw out the old 'dollar up stocks down' rule, as equities once again brush off all horrible daily news today and once again rise 1% to price in QE3 trillions for the who-knows-how-many-times-over-now which wont be delivered Sept 21.

Nevermind all that of course, as a boring egg-head targeted bond rate hand-holding plan will replace the free $2.5 trillion free money for stocks QE3 bonanza.

Anyone really think the spoiled teen brat girl equity markets which have been promised a new red Ferrari for her SuperSweet 16 birthday party will be just as happy when a rusted out VW bug is unveiled Sept 21? I dont.

Thu, 09/08/2011 - 11:32 | 1646337 Justaman
Justaman's picture

Stagflation

Thu, 09/08/2011 - 11:33 | 1646341 Josh Randall
Josh Randall's picture

Did the snake bite you or just kiss you with his teeth ? Speculation that QE3 will boost the $h!t out of commodities.

QE3 = Baked in

Thu, 09/08/2011 - 11:34 | 1646345 SheepDog-One
SheepDog-One's picture

And wont be delivered.

Thu, 09/08/2011 - 11:35 | 1646348 Jason T
Jason T's picture

rudy Von Havenstein had the same policy.  unemployement in Germany in the summer of 1922 was 1%! it worked wonders... until it didn't.  tis a deal with the devil money printing don't ya know.

Thu, 09/08/2011 - 11:39 | 1646365 DefiantSurf
Thu, 09/08/2011 - 11:47 | 1646387 rambler6421
rambler6421's picture

As much as I love RP.........RP fans vote in like crazy.  But I'm glad that RP is inching up in legit polls.  He's in the top three or four.  We have hope!

Thu, 09/08/2011 - 11:54 | 1646407 DosZap
DosZap's picture

<rambler6421  >

Ron Paul, is right on 98% of what he say's.

BUT, if he was at 98% on the Polls he would NOT get the nomination........

No way in Hell.

It's not the PTB's plan.

Thu, 09/08/2011 - 11:56 | 1646422 NotApplicable
NotApplicable's picture

You realize though, that it's because he has the largest base. All of the rest have to depend upon undecided voters, a.k.a., the sheeple who have to be told who is electable by the MSM. It's far too early for them to risk attaching themselves to a loser. They will wait until the herd thins.

Thu, 09/08/2011 - 11:42 | 1646374 Bam_Man
Bam_Man's picture

Everything is steadily deflating in terms of "real money" (gold).

Prices expressed in ponzi-fiat confetti have been rendered meaningless.

Thu, 09/08/2011 - 11:49 | 1646393 Cdad
Cdad's picture

Speaking of commodities and the stronger dollar, the Aussie just yesterday closed a five day gap against the dollar...and does not look like it will continue the move.  Even a modest pullback on that cross would put more of a bid into the dollar.  Losses on the Euro and the Swissy should accelerate...if I've learned anything from my recent observations of the currency markets.  But I don't trade FX...so what do I know?

Let the running of the FX lemmings commence.

So that would leave Ben Bernanke's vague comments about doing the twist and President Zero's speech on goodies he cannot deliver as the last frayed strands of thread holding up helmet wearing equity buyers. 

Brilliant!  Cue up more criminal syndicate Wall Street banker commentary about "historically cheap valuations."

Thu, 09/08/2011 - 12:04 | 1646459 Cdad
Cdad's picture

The totally pissed off and depraved USD studman, locked in Lloyd Blankfein's closet for the last year, is breaking that door down.  His language, roaring through the cracks in the door, would make a sailor blush.  A year of deprivation, locked down, beaten, abused, devalued, disgraced...all for the needs of a syndicate of criminal bankers and moronic politicians.

As always, and should the door come down [and even as I write, the Dixie is hitting 76], and especially if he is carrying a bottle of lube...were I you, I'd clear out.

And if he makes it through, and after savaging Lloyd and his crew [with soon thereafter to be released niche adult movies released on the Internet], I think what you have is a sell everything but him kind of moment...which is long overdue.

And what is this...there is someone else in the closet with him?  Is it...can't quite see...is it Bidless?

Thu, 09/08/2011 - 12:17 | 1646508 Cdad
Cdad's picture

Options now...becoming more and more limited.  How to make the dumb algos buy?  Hmmmm?  

Knock down gold?  Knock down the VIX?

The number of charts you need to follow now is shrinking....you know, to track this, the latest iteration of a synthetic rally in the synthemarket.

Just disgraceful.

 

Thu, 09/08/2011 - 11:50 | 1646397 anynonmous
anynonmous's picture

Roubini implies war in Europe if it dissolves in a new column

http://www.smh.com.au/business/unity-is-path-out-of-europes-mire-2011090...

In short, the greatest task of European leadership today is to re-sell the European idea. They need to remind the public the absence of war, the freedom of mobility and the rising prosperity they have taken for granted since the end of the Cold War have been due to the path towards unity and away from the nationalist demons of the past.

Thu, 09/08/2011 - 12:03 | 1646454 NotApplicable
NotApplicable's picture

Gee, why does this not surprise me in the least.

The euro zone's crisis is dragging down the global economy - full economic and political union is now urgent, write Nouriel Roubini and Nicolas Berggruen.

In other words, the very problem that was created with the compromise at the birth of the Eurozone (incomplete monetary centralization), can now only be fixed by full centralization, something which would never pass without an impending disaster to create a mandate for change.

So, why can't they decentralize, Nouriel?

Thu, 09/08/2011 - 12:08 | 1646474 dcb
dcb's picture

OK. the ecb is buyign bonds on the secondary market, that's QE. the swiss will print to infinity to defend the frank/ euro  level. 2ish I knoew how to trade this, because it tells you when to short the swiss frink to a T. therefore, each program is a form of injecting money into the system.

Thu, 09/08/2011 - 12:29 | 1646564 EL INDIO
EL INDIO's picture

I think the biggest upset this autumn will be the violent rise of the dollar. Everyone is so bearish about it, everyone is so sure a massive QE3 is coming but what if it does not?

If you believe that those who run the show are evil don’t you think the most evil think to do right now is to screw everyone by not printing more money?

They will probably do it later, but not before they f**ked everyone.

The EURO holders will try to flee it, where are they going to go? Some money will be allocated to Gold but most of it will go back to the dollar until it collapses too. Right now the USD is doing a silent rally but it won’t stay that way for long.

Think about it, it is not in China’s interest to see its dollar holdings evaporate, therefore they will not do what might kill the dollar. Slowly buying commodities is the best they can do.

Folks if you have some PMs hold on to them but do not buy at this very high prices wait until the end of this month to see what happens. If you don’t have any buy some and keep some cash for the eventuality of a strong dollar rally.

Better to be prepared than sorry.

Thu, 09/08/2011 - 13:15 | 1646745 A_MacLaren
A_MacLaren's picture

Don't forget the other reason that isn't "Inflation" and isn't "Growth"

Namely...  Speculation!

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