Posted on 04/10/2011 8:34:59 PM PDT by Zakeet
One word (well technically two) can describe what is going on in the electronic pre-market arena right now: inflationary hysteria. Gold is at a new record, wheat is surging, corn is at highest since 2008, crude at a new 30 month high, silver is at $41.10 - a new fresh post Hunt high, beans surging, etc, etc, etc. Essentially everything is bid, following news first reported on Zero Hedge that PIMCO is betting the farm that either inflation is about to go parabolic and force bondholders to dump everything, or that the Fed will have no choice but to pursue another round of QE, sending gold to $2,000 and unleashing the Weimar endgame.
Gold:
Silver:
WTI:
CORN:
Note:
Information about the reference to PIMCO can be found here: Exclusive: Bill Gross Is Now Short US Debt, Hikes Cash To $73 Billion, An All Time Record
Worldwide financial markets are currently giving their assessment of Friday evening's much heralded budget compromise ... and it's not pretty
Get that garden planted, and do it now.
Ebonomics ain’t workin too well. Obama is a Jinx!
dont know that much about finance but i dont see how holding $73 billion in cash can be a strategy if you believe inflation is about to explode. cash is the one thing you dont want.
Well this isn’t good news! What are they saying now when the bottom drops out time wise? Looks like we’ll be lucky if it doesn’t blow before the years end.
There are far bigger shadows gliding silently under the ice than a six month CR in Washington.
How do you say were screwed in Chinese?
The rest of the world thinks America is a third world joke now. No one wants dollars or Treasuries. POst 2008 - no one takes America seriously anymore. Celeb cultures of ball games and idiots.
The masses are sheep controlled by TV including many here who think Fox AL Waleed is better than CNN Al Waleed or ABC Al Waleed. Dumb sheep.
Zimbabwe Part 2.
This is just a warm up for the 3rd and 4th quarters.
I hope to hell there are plenty of libs standing in the soup line with me. Morons.
But at least I’ll be a little late to the line.
My BIL (nice guy, but in total denial) and his socialist NEA wife think I am paranoid. They have 1 week’s worth of food in their house. Think I am a tin foil hatter for stocking up on canned goods, water and consumables for my personal protection devices of various calibers.
I’m confused too. Back in early March, conventional wisdom said the Gross announcement was signaling the end of QE and the beginning of a deflationary period. Now the conventional wisdom has reversed itself. Why?
Gold has been tethered to crude lately. I think the gold dip is in anticipation of oil falling in light of Gaddafi’s peace offering.
Yawn...
Thx, Qx ping.
Commodities markets have a reputation for showing more volatility than stocks and bonds. It is difficult for most of us to assess whether this movement constitutes “panic” without more data. For instance, can a larger time scale be supplied; perhaps over several weeks or even months?
Cash is a lot better than bonds ... the former losing purchasing power and the latter crashing.
The problem with investing $73 billion is that it's a lot of money and the precious metals market (one of the best hedges) is small. Total Ag is in the range of $30 billion and total Au is somewhere around $300 billion) PIMCO cannot invest anywhere near the amount of cash they hold without sending the the prices of the securities they are buying into the stratosphere.
Gold is down 3.20 from its close on Friday afternoon, before the budget deal, basically on a strengthening dollar, so I doubt seriously the gold market is making any kind of negative statement about it.
Most of the action on Au takes place with the LBME and COMEX. Both have yet to open. According to Kitco, Gold is down slightly on softening demand as well as a slightly strengthening dollar ... primarily in news that Gaddafi may have accepted a cease fire leading to his surrendering power. More significantly, Gold is up about $52 (more than 3.65 percent) over the past month, and $311 (about 28 percent) over the past year.
The idiots at the Fed and treasury were either so stupid that they believed their own silly propaganda, or they were blatantly lying.
The simple fact is that QE cannot end without crashing the market and the economy ... and it cannot go on unabated much longer. TurboTax Tim and Helicopter Ben are apparently trying to push the string out past the 2012 election. Most of the people I respect doubt if it can be done.
PIMCO is shorting US debt now. The only cheerleader that Bernanke has left is Cramer on CNBS - they pray daily that he can convince enough sheeple to trust in the bull market that is being inflated by funds from the treasury. The gig is up, it is going to get ugly very, very quickly. I’m glad that I invested heavily in certain items over the past couple of years.
Yep, now they know for sure that Boehner is a pussy, and no substantial cuts will be made.
Good bye Dollar.
Could I please wait til the ground unfreezes???
so what rises in inflation? real estate? gold? you can buy billions of either pretty easy cant you?
also, you can spend money on buying shorts, not the bermuda kind, the financial kind, if you think bonds or equity will tank. how about that?
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