Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (63263)	6/10/2006 3:18:40 AM
From: shades	Respond to of 110194

It's very different in financial futures as no one "produces" them. I guess I am still not understanding - if you take mish's definition of inflation - the production/increase of more money and credit - isn't this exactly what the printing presses are doing - making more product? Isn't this what Japanese producers of money did? They made more of the product and flooded the world with it? You say at turning points dumb money often gets it wrong - well recently on the yen dumb money went net long and commercials net short. Mosler keeps saying over and over people taking our dollars and going into debt is a good thing. That we need to be in far more debt than we are. mosler.org Crude is testing my suspicions. If Saudis are in fact setting price and letting quantity float oil will be floored at their asking price. Either way, we are now probably in the 'endgame' with Saudis already cutting production a bit due to lack of demand, but holding price. Other commodities also look like they've crested and are probably going sideways for a while, with $ swings moving them around a bit. Elevated prices are bringing out new supply, including crude oil, that will eventually cause a major price reduction, but that should be many months down the road. Refining capacity will be a limiting factor and could result in much wider refining margins if sufficient demand for refined product is sustained. Meanwhile demand is hurting as the too small deficit has hiked the financial burdens ratio to the point where the rate of household credit growth decelerates, and pension fund asset allocation shifts have crested and will be adding less to GDP and price pressures. Fed's on the warpath until the upward trend in gasoline ends, due to the connection between gasoline prices and inflation expectations.