• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Spot The Similarity

Tyler Durden's picture


A problem with increased difficulty*

* For the BLS that is. Somehow all of the above has to be spun as deflationary.

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Tue, 08/21/2012 - 15:58 | 2725052 PrintingPress
PrintingPress's picture


Tue, 08/21/2012 - 16:01 | 2725066 Gene Parmesan
Gene Parmesan's picture

Steak tips that is. While you can afford them.

Tue, 08/21/2012 - 16:10 | 2725106 Dr. Richard Head
Dr. Richard Head's picture

"Let them eat dyed linen with dead presidents on it!" - Benny "The Bearded" Bernanke

Tue, 08/21/2012 - 16:16 | 2725131 LMAOLORI
LMAOLORI's picture




Dr. Richard Head

They won't care if you eat at all


The Bernanke Cliff


Central banks across the globe are about to launch a coordinated effort to boost inflation. You would be wise to prepare accordingly.



Tue, 08/21/2012 - 16:31 | 2725200 Hype Alert
Hype Alert's picture

Maybe the plan is to get everybody on EBT cards.  Certainly headed that way.

Tue, 08/21/2012 - 16:35 | 2725218 mr. mirbach
mr. mirbach's picture

They are going to skip the card and implant an RFID chip. Then they'll just load your monthly credits in the system for your slave labor job, like out of some Heinlein novel.

Tue, 08/21/2012 - 16:42 | 2725247 malikai
malikai's picture


Tue, 08/21/2012 - 17:03 | 2725254 ZerOhead
ZerOhead's picture

Spot The Similarity

Corn, rice, soy and wheat all way up.

Biofuels are finally becoming more popular?

(I can't wait until they get those corn-fired power plants up and running... at least things will smell nice downwind for a change although the 'popping' noise may prove deafening...)

Tue, 08/21/2012 - 17:35 | 2725401 AldousHuxley
AldousHuxley's picture

look at these charts:





which one is different?


grains etf...especially starting mid summer since the drought hit. You could have predicted this from VERY mild winter. no snow in ski resorts ---> no water for farms in the summer.


snow caps are nature's natural water reservoirs....

Tue, 08/21/2012 - 17:55 | 2725452 JPM Hater001
JPM Hater001's picture

Screw commodities....Let them eat cake!

Tue, 08/21/2012 - 18:30 | 2725532 economics9698
economics9698's picture

What the fuck is wrong with you peasants?  The fucking CPI is 1.7%.  Move along assholes.

Tue, 08/21/2012 - 19:41 | 2725692 FreedomGuy
FreedomGuy's picture

You have to put the charts in context. Actually, you can argue it is deflationary. The prices are up not because of a weakening dollar but because of shortage. It i just the other side of the supply and demand chart or more precisely a price-demand chart. Since the supply is down there is more price competition for the remaining supply, i.e., a stronger more competitive demand for each unit.

Incomes are flat. Personally, I think they are decreasing outside of government jobs. So, people will spend MORE on food while making the same or less. This puts downward pressure on other prices. People eat out less, cancel some or all of their cable, etc. Add gas prices to it and it actually might be deflationary.

What we see these days to me is a fascinating confluence of two powerful economic forces. One force is the coordinated effort of all governments worldwide to reflate or inflate to get out of debt. The other force is the amazing ability of those same centrally planned governments to wreck their own economies causing deflation. I cannot tell which will win out, but I tilt to deflation these days when I see legislation like Obamacare and tax hikes.

Tue, 08/21/2012 - 18:39 | 2725547 NidStyles
NidStyles's picture

I think they stopped with that excuse a while ago... Something about it being on going...

Tue, 08/21/2012 - 22:04 | 2726068 prains
prains's picture

all your graphs are belong to us

Tue, 08/21/2012 - 19:07 | 2725606 Papasmurf
Papasmurf's picture

One in each hand - double dip.

Tue, 08/21/2012 - 16:25 | 2725169 max2205
max2205's picture

You know they read it upside down...get with it man!!

Tue, 08/21/2012 - 16:13 | 2725112 Biggvs
Biggvs's picture

Bullish! How can anyone go hungry? Green shoots for every pot and a combustion, strike that, combustible car for every backyard!

Tue, 08/21/2012 - 16:21 | 2725158 aint no fortuna...
aint no fortunate son's picture

somewhere I hear a chorus of terrified little chirping acolytes singing "but, but, they're all volatile" - volatile this, you fucking little hobbits

Tue, 08/21/2012 - 17:06 | 2725313 Juan Wild
Juan Wild's picture

A fine example of the lofty heights of today's investigative journalism.

Tue, 08/21/2012 - 16:21 | 2725159 slaughterer
slaughterer's picture

QE3 leading to world-wide food riots leading to WW3.  Bullish!

Tue, 08/21/2012 - 17:35 | 2725403 Dingleberry
Dingleberry's picture

"This is all drought related.....I told ya'll bitchez inflation is contained!!"



Tue, 08/21/2012 - 16:00 | 2725056 Hype Alert
Hype Alert's picture

Exactly, we need to print money because of the worry of deflation.  [/sarc]

Tue, 08/21/2012 - 16:05 | 2725084 silver500
silver500's picture

But Bernake says commodity prices are determined by global supply and demand for each commodity and not fed policies.  Any correleation is therefore coincidence.  Of course Bernake claimed credit for the increase in the S&P500.

Tue, 08/21/2012 - 16:12 | 2725115 Dr. Richard Head
Dr. Richard Head's picture

And targeted inflation of 2-3% is good and the Fed is working well within that mandate.  Additionally, it depends on what the definition of inflation is.

Tue, 08/21/2012 - 16:12 | 2725118 silver500
Tue, 08/21/2012 - 16:17 | 2725143 Hype Alert
Hype Alert's picture

Yes, it's perfectly fine to inflate the cost/price of companies and Bernanke's skills are so fine tuned as to not inflate the cost/price of commodities.  The only problem is trashing the currency they are priced in.  I'm sure if he, or anyone else, thinks about it long enough, they can figure out the relationship.

Tue, 08/21/2012 - 19:07 | 2725605 Lewshine
Lewshine's picture

To: Hype Alert  "I'm sure if he, or anyone else, thinks about it long enough, they can figure out the relationship".

I'll take that bet all day long!! You offer far too much credit to the cognitive perceptions of your fellow man.


Tue, 08/21/2012 - 16:00 | 2725060 HoofHearted
HoofHearted's picture

Oooh ooohh, pick me, Mr. C.

These are all things that are not growing in most peoples's back yards. See. I knew I could get it.

Tue, 08/21/2012 - 16:22 | 2725163 Midas
Midas's picture

I just harvested my Yukon Gold potatoes from my garden.  Those bastards are tasty.  They really do taste like they have been buttered.  Easy to grow, but I probably should have planted more than four....

Tue, 08/21/2012 - 17:03 | 2725226 hedgeless_horseman
hedgeless_horseman's picture



Down here we grow sweet potatoes, aka yams. 

Too cheap to chart.

Tue, 08/21/2012 - 17:15 | 2725333 startingnow
startingnow's picture

Bought my year's supply of hay for my cattle this A.M...   At the price, you all better get used to stone soup heated by hot air from our leaders.  That's all most people will be able to afford.

Wed, 08/22/2012 - 00:43 | 2726337 ShakaZulu
ShakaZulu's picture

Hope you bought your year's supply of ammo, also.  Those coldstone eaters are going to get really hungry for fresh cow.

Tue, 08/21/2012 - 19:10 | 2725610 Papasmurf
Papasmurf's picture

Potatoes are bad for your health.  Eat up, and go long insulin.

Tue, 08/21/2012 - 16:02 | 2725061 PaperBear
PaperBear's picture

All dancing to the beat of the same drum.

And that beat comes out of the non-Federal non-Reserve.

Tue, 08/21/2012 - 16:01 | 2725064 Comay Mierda
Comay Mierda's picture

but but phd economists say that's transitory!

Tue, 08/21/2012 - 16:01 | 2725065 bania
bania's picture

rorschach images of paul kedrosky

Tue, 08/21/2012 - 16:02 | 2725067 RacerX
RacerX's picture

those charts are most certainly bullish

Tue, 08/21/2012 - 16:02 | 2725068 francis_sawyer
francis_sawyer's picture

Print more food... NOW!

Tue, 08/21/2012 - 16:02 | 2725069 madcows
madcows's picture

No need to worry about the cost of food.  I've got an iPad.  I can look up pretty tempting pictures of food on it.  And, it's the latest version.. very fast internet.  It has lots of capabilities.  Much more than the previous version.  So, even though I paid twice as much, there is no inflation via hedonics.

Tue, 08/21/2012 - 16:15 | 2725130 ParkAveFlasher
ParkAveFlasher's picture

When the big hit comes all those gadgets will be scrapped for their silver and copper and recyclable material content. 

And that is how societies return to darkness without physical memory of what was, except what gets etched in stone or worked into pure metal. 

Tue, 08/21/2012 - 16:22 | 2725166 cougar_w
cougar_w's picture

The memory hole awaits all of this.

Tue, 08/21/2012 - 16:32 | 2725208 ParkAveFlasher
ParkAveFlasher's picture

yeah ... and in other holes, we find huge caches of roman gold & silver coinage.  pretty pure.  ready to collateralize. 

Tue, 08/21/2012 - 16:30 | 2725187 francis_sawyer
francis_sawyer's picture

On the Cu front... The $5k I've saved over the past 5 years NOT buying i-phones (or even using a cell phone)... I exchanged at the bank for US nickles...

I'm not sure where they are anymore though (or really ~ if I missed any calls or text messages along the way)...

Tue, 08/21/2012 - 16:31 | 2725199 ParkAveFlasher
ParkAveFlasher's picture

oooh nickels are heavy.  they don't float, you know.  nothing like a duck.

Tue, 08/21/2012 - 16:45 | 2725252 francis_sawyer
francis_sawyer's picture

they're heavy as shit... Harder to steal than gold though... & FIAT price fluctuations are no bother...

Tue, 08/21/2012 - 17:05 | 2725311 ParkAveFlasher
ParkAveFlasher's picture

who cares about the spot price?  TPTB are on a pan-generational timeline.

4 generations ago, the Federal Reserve was chartered.

3 generations ago, FDR criminalized possession of gold bullion.

2 generations ago, Nixon removed all hardness from the dollar, "temporarily".

1 generation ago, in fact a little bit less than a generation, the bull market started.

Tue, 08/21/2012 - 17:58 | 2725464 exi1ed0ne
exi1ed0ne's picture

or gravy

Tue, 08/21/2012 - 16:02 | 2725070 Nothing To See Here
Nothing To See Here's picture

Well guys, let's not fall into BLS-type fabricated data and put 3 times the same chart as if they were proof of 3 different things (soybeans)

Tue, 08/21/2012 - 16:02 | 2725072 Hype Alert
Hype Alert's picture

"You didn't inflate that!" 


Oh yes he did..

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