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

To: Horgad who wrote (94231)	5/14/2008 2:37:32 PM
From: GST	Read Replies (2) \| Respond to of 110194

People here are trying to understand with some clarity what exactly is going on in the world -- and there is plenty of confusion to go around. Mish is nothing more and nothing less than a prime example of a person who conflates issues in such a way as to create an enormous amount of confusion -- and nothing creates more confusion than insisting that inflation has nothing to do with prices. What many here want to do is to dispel that confusion -- but not only that confusion. We are in a very dangerous inflationary spiral -- people should want to understand how that is related to US bond prices, dollar valuation, stock prices, house prices, economic growth, commodity prices, money supply, interest rates and globalization.

To: Horgad who wrote (94231)	5/14/2008 3:18:56 PM
From: sea_biscuit	Respond to of 110194

Ok, man! Chill out! Let's all hope that Mish gets a job at the BLS (which he fully "deserves", btw ;-) ) so we no longer have to comment on his blogs.

To: Horgad who wrote (94231)	5/14/2008 3:28:12 PM
From: NOW	Respond to of 110194

LOL!

To: Horgad who wrote (94231)	5/14/2008 6:32:12 PM
From: Keith Feral	Read Replies (1) \| Respond to of 110194

What do you expect on this thread? The thread is dictated by inflationists waiting for the world to fall apart so they can increase their profits in gold. Keep in mind that gold has underperformed Citibank since the end of March, so everyone is getting very defensive.<g> There is nothing special about inflation. It always leads to bubbles, especially when everyone becomes convinced the "new" market is so tight that it will be different this time. All we need is for Bush to open the SPR and the inflation trade will be dead for the summer. The key to destroying the inflation trade will be a violent correction in supply. We already saw the first step by the government to stop adding to the SPR which might have a gradual impact on demand. However, if the government dramatically increases the short term supply, that will send the oil prices into a tailspin. The bullish "silver lining" to a drop in oil prices is that it would take the pressure off production costs for the rest of the commodity sector. Every miner and oil producer would be far more profitable with oil back at $100 a barrel. It would also make it cheaper for all the utility companies to reload their natural gas inventories this summer.