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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?


To: jim_p who wrote (15038)2/3/2009 2:15:31 PM
From: Amark$p3 Recommendations  Read Replies (3) | Respond to of 50416
 
What is your thought process on grains, e.g. DBA or RJA.

Do you think corn, wheat, soybeans, sugar will maintain their relative value...?

My thought process is precious metals, oil and grains will outperform US Treasuries, money market funds, etc.

Per prior article, seems that sovereign debt may no longer be safe...

In regard to deflation/inflation debate, still deflation until we see velocity of money increase. The M-1 multiplier falling to .945 in December 2008 was shocking...
geocities.com
"Pumping more dollars into the economy is not being "multiplied", so each subsequent new dollar added has less and less of an impact.Mr. Bernanke jokingly said in 2002 that he could always twart deflation by dropping unlimited dollars from helicopters -- with a negative M1 Multiplier, those dollars are more likely to be hoarded than spent."

If and when we see M-1 multiplier start rising, then I think we see inflation.



To: jim_p who wrote (15038)2/3/2009 3:38:06 PM
From: Fiscally Conservative1 Recommendation  Read Replies (2) | Respond to of 50416
 
Jim

The housing bubble's negative load on the economy in general is already being manipulated by the government to lesson the credit crisis on the bankers and investment scam houses. These stimulus packages,as insane as they are,will have a short t intermediate term net positive effect on the economy which effects should begin to been seen by mid to late Spring and into the Summer and early Fall. I fully expect an arousal to work its way into the general markets. This will have its effect on inflation and then the genie is out of the bottle. A double dip recession is in the cards but inflation will be here to stay,imo.