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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (144420)	2/1/2011 7:17:11 AM
From: ChanceIs	2 Recommendations Respond to of 206338

>>>one of the most talked about causes of these revolts is food inflation. How much of this caused by QE2 and biofuels would be interesting to know.<<< That is a very important point - good old unintended consequences. I think that there is an increasing awareness of these two factors. QEII is cruel to many members of society. It seems that foreign countries doing large amounts of business need to match Bernanke's printing monetary unit for monetary unit, leading to domestic inflation in countries foreign to the US. inflation. It also makes life very hard on fixed income pensioners here in the US as they have to roll over into increasingly low yielding instruments. Certainly we had the ethanol related food spike back in '08. It seems to be repeating today. I usually don't get liberally, politically charged, but with the enormous privilege of being the world's reserve currency comes enormous responsibility. We are totally ignoring the responsibility end, and causing misery world wide. I think that the bill will come due in the form of oil prices and higher US interest rates a the bond vigilantes are getting their tack out of storage for the ride to Washington. It seems that now, as in '08 the financial press has lost sight of the total correlation of US recessions with oil price spikes. Yes, yes we hear that we have moved from "green shoots" to reasonable growth - just look at the GDP. Perhaps $80 crude is the new normal and we have reduced demand through efficiency gains. This spike to $100 Brent will not throw the US back into a double dip. I am not convinced as I think that discretionary spending will go to zero with the food and crude inflation.