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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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Thu, 03/01/2012 - 15:34 | 2213785 Conrad Murray
Thu, 03/01/2012 - 16:30 | 2214160 RossE9
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 ..... http://goo.gl/skBIp

Thu, 03/01/2012 - 16:47 | 2214315 Flakmeister
Flakmeister's picture

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

You might very well enjoy it though...

Thu, 03/01/2012 - 16:51 | 2214348 Flakmeister
Flakmeister's picture

.

Thu, 03/01/2012 - 17:14 | 2214542 fuu
fuu's picture

Please DIAF.

Thu, 03/01/2012 - 18:25 | 2214844 Bam_Man
Bam_Man's picture

Who says there isn't any wage inflation!

Thu, 03/01/2012 - 15:35 | 2213788 Sophist Economicus
Sophist Economicus's picture

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

Thu, 03/01/2012 - 15:41 | 2213820 EscapeKey
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.

Thu, 03/01/2012 - 15:52 | 2213880 JPM Hater001
JPM Hater001's picture

He was being sarcastic.

Thu, 03/01/2012 - 15:54 | 2213896 disabledvet
disabledvet's picture

So was escape key.

Thu, 03/01/2012 - 15:58 | 2213920 tarsubil
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

Thu, 03/01/2012 - 16:00 | 2213928 EscapeKey
EscapeKey's picture

I refuse to visit that site.

Thu, 03/01/2012 - 16:06 | 2213964 tarsubil
tarsubil's picture

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

Thu, 03/01/2012 - 16:08 | 2213963 CrashisOptimistic
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.

Thu, 03/01/2012 - 16:33 | 2214169 tekhneek
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.

Thu, 03/01/2012 - 15:42 | 2213829 Conrad Murray
Conrad Murray's picture

Maybe there's a wee little bit of inflation: http://bpp.mit.edu/usa/

Then again, maybe there's a wee lotta bit of inflation: http://www.shadowstats.com/alternate_data/inflation-charts

Thu, 03/01/2012 - 16:03 | 2213937 kito
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?

http://finance.yahoo.com/echarts?s=RJA+Interactive#chart1:symbol=rja;range=1y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Thu, 03/01/2012 - 16:29 | 2214154 Sophist Economicus
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....

Thu, 03/01/2012 - 15:35 | 2213789 surf0766
surf0766's picture

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

Thu, 03/01/2012 - 15:36 | 2213796 blu
blu's picture

Bullish!

Thu, 03/01/2012 - 15:36 | 2213797 SheepDog-One
SheepDog-One's picture

Anti-fuel to hockey helmeted equities!

Thu, 03/01/2012 - 15:37 | 2213805 Dick Darlington
Dick Darlington's picture

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

Thu, 03/01/2012 - 15:41 | 2213817 urbanelf
urbanelf's picture

OIL: I will break you.

Thu, 03/01/2012 - 15:41 | 2213818 monopoly
monopoly's picture

Transitory. I have it on good authority.

Thu, 03/01/2012 - 15:46 | 2213851 hedgeless_horseman
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...

Thu, 03/01/2012 - 15:51 | 2213867 EscapeKey
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!

Thu, 03/01/2012 - 16:03 | 2213938 Flakmeister
Flakmeister's picture

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

They will get crushed...

Thu, 03/01/2012 - 16:14 | 2214009 EscapeKey
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.

Thu, 03/01/2012 - 15:42 | 2213827 tmosley
tmosley's picture

What's that priced in gold, Tyler?

Thu, 03/01/2012 - 16:04 | 2213944 Flakmeister
Flakmeister's picture

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

Thu, 03/01/2012 - 16:14 | 2214011 tmosley
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?

Thu, 03/01/2012 - 15:42 | 2213830 Internet Tough Guy
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.

 

Thu, 03/01/2012 - 15:47 | 2213858 tmosley
tmosley's picture

Fail.

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.

Thu, 03/01/2012 - 15:52 | 2213881 Internet Tough Guy
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.

Thu, 03/01/2012 - 16:07 | 2213968 tmosley
tmosley's picture

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

>>ECB

>>complete credibility

>>mfw:http://files.sharenator.com/implied_facepalm_Facepalm-s646x501-42869-580...

Thu, 03/01/2012 - 16:15 | 2214022 Internet Tough Guy
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.

Thu, 03/01/2012 - 16:22 | 2214084 tmosley
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.

Thu, 03/01/2012 - 16:26 | 2214125 Internet Tough Guy
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.

Thu, 03/01/2012 - 16:54 | 2214373 tmosley
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.

Thu, 03/01/2012 - 17:03 | 2214431 Internet Tough Guy
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?

Thu, 03/01/2012 - 15:43 | 2213836 aVian
aVian's picture

http://www.presstv.ir/detail/229494.html

 

Explosion destroys oil pipelines in Saudi Arabia's Awamiya

Thu, 03/01/2012 - 15:44 | 2213844 alien-IQ
alien-IQ's picture

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

Thu, 03/01/2012 - 15:49 | 2213869 Motorhead
Motorhead's picture

Brent crude, bitchez!

Thu, 03/01/2012 - 15:49 | 2213870 VelvetHog
VelvetHog's picture

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

 

http://finance.yahoo.com/blogs/daniel-gross/limited-gas-pains-why-u-bett...

 

 

Thu, 03/01/2012 - 15:56 | 2213909 Flakmeister
Flakmeister's picture

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

Thu, 03/01/2012 - 16:23 | 2214107 tmosley
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.

Thu, 03/01/2012 - 16:04 | 2213945 BandGap
BandGap's picture

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

Thu, 03/01/2012 - 15:54 | 2213893 Flakmeister
Flakmeister's picture

Big move....

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

Thu, 03/01/2012 - 15:59 | 2213923 surf0766
surf0766's picture

And no one will be driving

Thu, 03/01/2012 - 16:24 | 2214114 tmosley
tmosley's picture

No-one without gold or silver will be driving.

Fixed that for you.

Thu, 03/01/2012 - 16:24 | 2214117 Hulk
Hulk's picture

It shall be called "Gas Memorial Day" ...

Thu, 03/01/2012 - 16:29 | 2214149 Widowmaker
Widowmaker's picture

...and no one will see it coming, no one.

Thu, 03/01/2012 - 15:55 | 2213902 Moneyswirth
Moneyswirth's picture

Clearly this is a sign that the economy is in better shape than previously thought. 

Dow 14,000 here we come...

Thu, 03/01/2012 - 15:58 | 2213917 Motorhead
Motorhead's picture

Precious metals, bitchez!

Thu, 03/01/2012 - 16:28 | 2214143 Widowmaker
Widowmaker's picture

This is fixed with the stroke of one word with a pen.

DELIVERY!

Thu, 03/01/2012 - 16:31 | 2214174 CrashisOptimistic
CrashisOptimistic's picture

Big surge, WTI could pop 110.  Saudi oil infrastructure explosion.  

There was a time when you could blow up Saudi installations and see oil move from $15 to $15.01.

No longer.  When it's scarce, you can't spare a single droplet.

Thu, 03/01/2012 - 20:39 | 2215222 Frozen IcQb
Frozen IcQb's picture

Didn’t Dick Cheney say “oil prices don't matter"?  Uhg? ...scratch that !

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