Deflation Monsters...what a joke!

Quote from PohPoh:

Trump up that deflation fear - it doesn't exist...
$40 crude, $800 gold...and you call that deflation? Is that all you got?
The deleveraging is almost over...we may have another leg down in the crowded, gamed sectors (energies, metals)...but watch consumer prices not come down at all..

ONLY some USD based assets will flounder and fail - Equities, bonds, real estate....granted that is a large amount - but watch consumer prices go nowhere but up...

You think your food will be any cheaper?
You think your gas for your shitty car will be cheaper?
You think it will cost less to heat your home?
Put clothes on your back?
Put your kids through school?
Insure your family?
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Sounds like something an Obama supporter who is opposed to free market capitalism would say.
 
Quote from Landis82:

Again, the key word that even you yourself used is . . . IF . . .
You also fail to mention that the Fed can "sterilize" these injections of money into the system. Even Bernanke has stated this in testimony before Congress a couple of months ago.


I'm not trying to play devil's advocate here, but yields on TBills are near ZERO for a reason, AND the consumer is pretty tapped-out as he watches his neighbor file for unemployment insurance.

Not the kind of environment that would push prices higher, in my opinion.
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I agree - in the short run (with you, not with Bernanke)..
Prices are already high...for most everything...
Even $2 gas is high, but just not compared to what it was 6 months ago...
Peak oil simulation preparing everyone for the real deal...
ATL gas shortage - a total microcosm test of the system...

If consumer price increases double from here, and employment also doubles (which is possible unless one has been blinded by Keynesian bullshit), it would be 4 times as painful...

T-bill yields are zero, but not because of deflation or fears of it - it's massive, unprecedented deleveraging, but not the true economic realities of deflation.
 
Quote from Landis82:

Given that most consumers own equities, bonds, IRA and 401 investment accounts, real estate, etc. and already maintain considerable debt levels with unemployment surging . . . where is the DEMAND going to come from that you see pushing inflation up?
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The DEMAND comes from the money we print...
You don't need to have growth to have inflation..
Just look at Zimbabwe..
 
Quote from Random.Capital:

I see a Black Swan in your future.

Good luck.
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Well I don't trade or invest that way - I don't put all my eggs in one basket and I always admit that there is a chance that I could be wrong. I just don't think so. If I am - then so be it...I will live to fight/trade another day...
 
Quote from stock_trad3r:

Sounds like something an Obama supporter who is opposed to free market capitalism would say.
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Obama sucks.
You have no idea what free market capitalism is about.
This from a guy who bashes the Constitution, promotes bailouts, wars, and deficit spending.
 
I'm as big a fiscal neo-con that you will find, but it is sad that private markets haven't stepped up to the plate and dealt with this in the beginning. Transparence in markets is rule number one in having faith in capitalism and everyone did their best to hide the market inefficiencies. I have 100 percent faith in free markets, but I have zero faith in the humans that operate free markets.
 
Quote from PohPoh:

The DEMAND comes from the money we print...
You don't need to have growth to have inflation..
Just look at Zimbabwe..
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The Fed has been "printing" money for most of this year, yet crude has collapsed over $100 per barrel and retail gasoline prices have dropped by 65% in ONLY 5 MONTHS!

There is no DEMAND for money when T Bill rates are nearly ZERO.

I think that you underestimate the current situation in the economy, let alone the global economy.
 
Quote from Landis82:

The Fed has been "printing" money for most of this year, yet crude has collapsed over $100 per barrel and retail gasoline prices have dropped by 65% in ONLY 5 MONTHS!

There is no DEMAND for money when T Bill rates are nearly ZERO.

I think that you underestimate the current situation in the economy, let alone the global economy.
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This doesn't account for commodities being an over inflated asset class.
 
Quote from Constantine:

I'm as big a fiscal neo-con that you will find, but it is sad that private markets haven't stepped up to the plate and dealt with this in the beginning. Transparence in markets is rule number one in having faith in capitalism and everyone did their best to hide the market inefficiencies. I have 100 percent faith in free markets, but I have zero faith in the humans that operate free markets.
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The markets were FREE, but not FAIR.
No accountability, transparency, or oversight given the "Commodity Futures Modernization Act of 2000".

Credit default swaps and Electricity contracts trading OTC and under the desk?

WTI trading overseas in London and Dubai with no oversight, no position limits, etc.

Yep, that's THE ticket!
:(
 
there certainy are inflationary forces that may show themselves more...in the future. for now, the deflationary forces are outweighing them.:D
 
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