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Is inflation about to take off?
1 posted on 01/26/2016 11:49:37 AM PST by Citizen Zed
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To: Citizen Zed

I doubt inflation is about to occur. I think oil specs who were short knew enough to take plenty off the table circa /CL 26-27. Those short were probably put on circa 30, maybe higher. Oil had really dumped violently in that period and shorts know, or learn, that they have to take profits when they are there because oil is so much closer to a bottom than a top.

Additionally, plenty of long interest came into the market from actual users of commodity products. If you are an airline and you have secured $30 oil for the next year (via your futures trading department) and you see 26.50 oil, you almost have to buy more.


2 posted on 01/26/2016 11:55:53 AM PST by Attention Surplus Disorder (I apologize for not apologizing.)
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To: Citizen Zed

Oh, no. By all means, bait-and-switch boss investors, toss another $60 billion into the black hole of oil prices kept low with junk debt. Let’s see how that turns out. I dare ya.


3 posted on 01/26/2016 12:07:50 PM PST by familyop ("Welcome to Costco. I love you." --Costco greeter in "Idiocracy")
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To: Citizen Zed

The Fed actually has an inflation goal. It’s like working to ensure money loses value over time. Nuts.


4 posted on 01/26/2016 12:11:04 PM PST by sparklite2 ( "The white man is the Jew of Liberal Fascism." -Jonah Goldberg)
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To: Citizen Zed

From the standpoint that oil goes back to near where it came from no.

From the standpoint that no other prices have gone down with oil and will surely use the excuse of oil returning to where it was as a reason to raise prices YES, of course. Always happens.

Beef on the hoof is down 20 to 25% this last year. Have you seen that price decrease in the grocery store? No, I didn’t think so. Will you see prices go up if beef on the hoof goes back to where it was? OF COURSE!

How do you like being played? Fun isn’t it?


5 posted on 01/26/2016 5:14:17 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
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