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The silent crash in commodities—a warning sign
CNBC ^ | 12/9/2014 | Ron Insana

Posted on 12/09/2014 2:07:10 PM PST by RightGeek

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To: Arthur McGowan

The dollar has strengthened though due to the decline in US oil imports because of the development of fracking and the relative economic weakness of other major economies.


21 posted on 12/09/2014 4:06:31 PM PST by Rockingham
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To: RightGeek

Ping


22 posted on 12/09/2014 4:24:27 PM PST by SomeCallMeTim ( The best minds are not in government. If any were, business would hire them!)
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To: proxy_user
Demand in China plummeting, mostly.

An a QE propped up house of cards. There's 18,000,000,000,000 reasons there is a bubble in sight.

23 posted on 12/09/2014 4:29:39 PM PST by catfish1957 (Everything I needed to know about Islam was written on 11 Sep 2001)
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To: Arthur McGowan

To have one world government the U.S. must be destroyed. The Bushes and Clintons and all the elitists are all in on it. W and Billy are brothers from a different mother. It’s all being manipulated. The dollar must be destroyed. That destroys U.S.


24 posted on 12/09/2014 4:30:47 PM PST by VerySadAmerican
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To: RightGeek
We're still paying top dollar for manure in Washington though.

No sh1t?

25 posted on 12/09/2014 4:33:23 PM PST by ChildOfThe60s ((If you can remember the 60s.....you weren't really there)
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To: RightGeek

This writer is such an idiot or is just misleading people on purpose. Commodities went up because of QE. Banks were one of the first stops of this cash, the first thing to go up in this cycle is commodities, which they did, stocks were also on the receiving end of this free money, so now that it has stopped both will deflate to levels before the pump was primed with free money.

Who made out, the Bankster’s and other crooks linked to both parties.


26 posted on 12/09/2014 4:33:35 PM PST by stockpirate (The Republican leadership all all Socialists, every one of them.)
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To: VerySadAmerican

There’s a reason Europe is dragging their gold out of NY. Or trying to.

There were some persistent rumors that a decent pallet of gold was aboard MH370.


27 posted on 12/09/2014 4:37:51 PM PST by txhurl (No more taglines)
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To: Rockingham

I read recently that the median income in N.Dakota has DOUBLED since 2006. It must just burn Hussein and the globalists that they haven’t succeeded in shutting down fracking. They’ve tried, with propaganda.


28 posted on 12/09/2014 4:40:33 PM PST by Arthur McGowan
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To: txhurl

They sure spent a lot of money looking for the plane, didn’t they.


29 posted on 12/09/2014 4:43:20 PM PST by VerySadAmerican
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To: P.O.E.; SAJ; Arthur McGowan
During WWI commodities nearly doubled in price but right after they went right back down.  The price drop for the 30's was constant throughout dropping almost another half.  Thing is what we're having so far now is nothing compared to those days.  OK, so the Nov. PPI comes out on Friday and maybe we've had big December drops that won't be announced until Jan., but for now the hard numbers really aren't there.  Yet. 

SAJ, you know of anything that we can work with here?


30 posted on 12/09/2014 5:11:00 PM PST by expat_panama
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To: RightGeek

But, but, but what about “peak oil”?


31 posted on 12/09/2014 8:43:35 PM PST by GOPJ (It's not that history repeats so much as human nature doesn't change. - Freeper henkster)
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To: proxy_user
Demand in China plummeting, mostly. Perhaps their phony bookkeeping is starting to catch up with them.

Their bookkeeping probably rivals ours for making a mess of all the equations used to determine that status of economies. This globalization crap has complicated things to the point that it can't be properly looked over and/or audited. Way too much obfuscation to prevent wholesale robbery by the powerful.

32 posted on 12/10/2014 2:57:11 AM PST by trebb (Where in the the hell has my country gone?)
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To: RightGeek
We're still paying top dollar for manure in Washington though.

That's not voluntary, and the manure is so polluted as to be unusable. It's more like toxic waste.

33 posted on 12/10/2014 3:08:32 AM PST by NorthMountain
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34 posted on 12/10/2014 7:04:30 AM PST by SunkenCiv (https://secure.freerepublic.com/donate/_______________________Celebrate the Polls, Ignore the Trolls)
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To: expat_panama
Pete -- Any time you have "fractional-reserve" banking, you have X amount of price inflation baked into the system. Add to that a controlled crude mkt, and you have more inflation baked in.

PPI is a garbage figure, and I do not follow it (AND, the metric has of course been adjusted in the goobermint's favour twice that I know of over the years). The fall in crude prices, which I foresee ending in Q1 next year, is nothing but a blessing for average citizens. Never mind the price of gasoline...I'm talking about the overall reduction in cost of production caused by lower crude prices. The people hand-wringing over this development are ALL -- every one of them -- simply talking their own book, quite selfishly.

The great, supposed, commodity "crash"? What rubbish. Commodity prices are doing a bit of reversion to the mean, not crashing. Coffee at 1.78, cocoa at 2900, feeder cattle (f'Heaven's sake) at two-bloody-thirty, soybeans STILL over $10/bushel? Yah, big crash. Uh-huh. Get the goobermint WAY away from the meat mkts if you'd like to see a "crash" (i.e. a restoration of proper prices).

What to work with here? Your eyes. Follow the commodity mkts at barchart.com (or any other site with near-real-time quotes). Goobermints generally, and THIS administration in particular, routinely lie their arses off about prices. Reading their "reports" is both the replacement for sleeping tablets AND a world-class psychosis inducement.

35 posted on 12/10/2014 9:13:44 AM PST by SAJ
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To: SAJ
...reversion to the mean, not crashing...

That's exactly what I was thinking but w/ all the hyped up crash-screaming it takes quite a bit of effort just to not run w/ all the lemmings.  That said, one thing I keep waiting for is all the pundits/politicians wanting to clamp down on all the greedy consumers and their windfall profits gouging unreasonably low prices off the backs of those poor suppliers.

 

--or is that just something that's used against the suppliers during a price surge?

36 posted on 12/10/2014 9:43:20 AM PST by expat_panama
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