EUR Brent Takes Out All Time Highs

Tyler Durden's picture

The market has decided not to wait for the ruinous aftermath of Stanley Fischer's plan to print money and buy stocks to come to fruition. It is, in fact, frontrunning it by buying that which can not be printed, and is completely oblivious of such anachronisms as cash flows or dividends that will soon be thoroughly debased. EUR Brent just took out all time highs. European inflation to follow.

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RossE9's picture

my classmate's mother makes $84 an hour on the internet. She has been fired from work for nine months but last month her pay was $19551 just working on the internet for a few hours. Read more on this web site .....

Flakmeister's picture

Sucking cocks in front of a video cam isn't for everyone....

You might very well enjoy it though...

Bam_Man's picture

Who says there isn't any wage inflation!

Sophist Economicus's picture

Thank God the CPI doesn't include food and energy, otherwise people would start feeling this pain

EscapeKey's picture

Well, that's core CPI.

CPI itself, however, run with ludicriously low weights for food and energy. And not only that - whenever food and energy increase, their net weights SHOULD increase, but don't. Which essentially means that the BLS assures us it's because we drive less and eat crappier food. Because it is simply not acceptable that we spend more of our income on those two inconveniences.

tarsubil's picture

Did you see this article in Business Insider? Oh hey, just buy crappier stuff when prices go up. See no inflation here. There is no inflation within 100 miles of Bagdhad

EscapeKey's picture

I refuse to visit that site.

tarsubil's picture

I stumbled across it today for the first time. Holy moly, what an overflowing toilet.

CrashisOptimistic's picture

I know it's a fave ZH meme to say food and energy are not in, or too lightly in, the CPI -- but the truth is there is solid work behind the weightings.

Those guys survey households to explicitly ask them what % of their budget is spent on X or Y or Z.  The weightings are not invented by the agency.  The weightings are derived from what they are told people spend.

Rent/housing is the overwhelming large % of expenditures in the US.  This Is Not True in other countries, but it is true here.  We are not seeing rents go up.  How could we?  All those vacant houses out there that people could go squat in . . . how can you increase rent?

Because it is so heavily weighted, it swamps out other costs.  Let's also recall that THE ONLY REASON GDP WAS UP 3% IN Q4 was because oil's price fell and affected the GDP Price Index, allowing a claim to 3%.  That index isn't the CPI. It weights rent much lighter.

We have reached the point of low activity where the GDP number is defined by the Price Index to a huge amount.  Just wait for Q1's numbers with oil having risen like this.  We could go negative.

tekhneek's picture

Man... what? Hedonistic weighting is bullshit when it comes to actual, literal price changes. You can't say that my car "costs" 20% less because it's 20% more efficient in X or Y way. The bottom line is that shit costs more dollars to acquire. Weight it however you want, it will not change the price tag that has increased x%. 

Just because Joe Blow's dairy farm is 50% better at producing milk than they were last year doesn't mean I get milk 50% cheaper.

End of story and besides that the BLS makes those numbers. I think we can all agree that they're one of those apples that fell pretty far from the tree. I'd rather look at NAR numbers than the CPI. Hell, even the unemployment number makes some miniscule amount of sense when held up to the CPI.

The CPI's only purpose is to keep COLA adjustments at bay forever while inflation eats away every last penny.

Conrad Murray's picture

Maybe there's a wee little bit of inflation:

Then again, maybe there's a wee lotta bit of inflation:

kito's picture

i guess jim rogers agricultural commidites index (rja) is wrong. because its been falling since early 2011. so how can you claim inflation is rampant when the prices for raw food is way down from its highs?;range=1y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Sophist Economicus's picture

Ahhh, an old Krugman trick.    Look at RJA since 2009, I think the inflation will be apparent.   Also, I don't know how efficient RJA is at minimizing contango -- but if it is anything like UNG, I'd short it even if agricultural prices are going up.  Also, end consumer prices for food (processed or raw) also depend upon fuel costs, transportation costs, taxes, insurance, etc.   All those have gone up, there is no deflation on the supermarket shelves.   But, you know that....

surf0766's picture

ISDA has ruled in favor of no inflation. They have spoken.

SheepDog-One's picture

Anti-fuel to hockey helmeted equities!

Dick Darlington's picture

Zee price stabeeletee! Dear Mario Ponzi, you truly have succeeded.

urbanelf's picture

OIL: I will break you.

monopoly's picture

Transitory. I have it on good authority.

hedgeless_horseman's picture



If the Russians would only share their super-secret technology to find and recover the "unlimited supply of abiotic oil" deep within the Earth...

EscapeKey's picture

The most amazing thing about that is that not only is it unlimited in supply, but the supply rate is also unlimited! So in a few years from now, the Russki's will probably supply 105mbpd from one field alone!

Flakmeister's picture

Thats why I am shorting all the Majors....

They will get crushed...

EscapeKey's picture

Well, you just won't believe how easily the Athabasca can be scaled to 200mbpd without any environmental damage whatsoever. They've invented this new technology, which automatically generates a EROEI above 5,000! Oh, and Bakken Shale will scale to 500mbpd in two weeks with hardly any investing!

Definitely time to short the IOCs.

tmosley's picture

What's that priced in gold, Tyler?

Flakmeister's picture

A lot more than it was yesterday at 9:00 AM....

tmosley's picture

Yes, a bit higher.  0.0727 now vs 0.0691 yesterday at 9:00am.  About a 5% gain.

Your point?  Did peak oil hit yesterday?  Is THAT what you are trying to imply?

Internet Tough Guy's picture

But you can print the euros to buy the oil. And since the ECB floats the price of gold on their balance sheet, euros depreciate against what? Gold, which increases on the asset side. Neat trick eh?

Try that with dollars. Euro FTW.


tmosley's picture


A bad check is a bad check.  It doesn't matter if you have gold in your safe or not, unless you are willing to sell it to cover your bad checks.  Which they aren't.

Internet Tough Guy's picture

You keep repeating this, but it doesn't make it true. Do yourself a favor and check the ECB gold reserves for the last decade. You will note that they have declined over time. ECB has complete credibility, The US (and you on this issue) have none.

tmosley's picture

Selling gold from your safe doesn't mean you are using the proceeds to cover your bad checks.


>>complete credibility


Internet Tough Guy's picture

You aren't able to keep up, I understand. So you saw how the volume of gold has gone down while the value has gone up? Can you understand that when you have a credible currency you don't have to deliver all your gold? That important people (oil producers) will choose to transact in that currency, making it strong in oil? 

No, you can't. Go back to 'liberating' silver, and a silver standard. That's so much more realistic.

tmosley's picture

Yeah, sure, so they can sell ALL of their gold except for some of the dust that is caught in the cracks, have a hundred quintillion euro in debt, and still be just fine.

When did I ever call for "liberating" silver (whatever that means), or a silver standard?  I call for a specie standard, where individual banks can issue banknotes if they see a need.  That is how it worked in the free banking period in Scotland and in America, and minimized fraud and ensured there was approximately zero malinvestment.  Much better than a system that has never been implimented once in the course of human history and that leads to hyperinflaiton by design.

Internet Tough Guy's picture

You still don't get it. They won't have to deliver gold. When the euro was created gold was 30% of reserves. Today there is less gold volume in reserves, but they make up 70% of value! Gold is going to incredible heights, and the Euro was designed for this transition.

You should read more and talk less.

tmosley's picture

The pound must be Freegold too!  They sold the shit out of their gold right at the bottom.

Freegold, Freegold everywhere.

And surprise surprise, the places that have "it" are collapsing.

Internet Tough Guy's picture

Pound has no credibility. Your specie system has been tried repeatedly and failed! The world moves on.

Why hasn't there been a run on euro gold at these prices? Credibility. And even if there was a run on euro gold at some point the ECB can raise the price of gold as high as they want. Make a market, two ways, and explode the value of their balance sheet.

The hyperinflation will be in the dollar, but euros will only depreciate against gold, not all real goods like in the US. Are you starting to see yet?

aVian's picture


Explosion destroys oil pipelines in Saudi Arabia's Awamiya

alien-IQ's picture

oh yeah...that should help Europe speed out of that pesky recession.

Motorhead's picture

Brent crude, bitchez!

VelvetHog's picture

Oil prices don't matter anymore.  Its way different this time.  Look here:



Flakmeister's picture

Do you really think that the US can weather higher gas prices better???

tmosley's picture

No, they can't.  Because all of thier purchasing power has been stolen from them via central bank interventions in the markets.

BandGap's picture

What a crock of shit. Steaming and heaping pile of crap.

Flakmeister's picture

Big move....

Based on historical price moves into the summer, Brent might hit $145-150 by Memorial day... 

surf0766's picture

And no one will be driving

tmosley's picture

No-one without gold or silver will be driving.

Fixed that for you.