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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (186799)	4/22/2022 6:08:35 PM
From: sense	1 Recommendation Recommended By fred woodall Read Replies (2) \| Respond to of 217750

There seem to be a lot of mixed messages and whistling past graveyards going on in the markets, now... Saw a Heresy Financial vid yesterday... talking about the Dallas Fed who: "recently warned about the risk that commodities pose to the economy and markets, citing evaporating liquidity, margin calls, and rising prices". So, the raw materials you use to make stuff... or use to fuel the economy... are a threat to the economy ? That doesn't sound right... Fed Warns Commodities Pose 'Macroeconomic Risk' The vid itself is OK... doesn't really drill down on it the way I'd like, given the headline and the focus... ? What I note is the TONE... consistent throughout.... in which it appears the Fed views commodities not as a critical part of the economy that they are responsible for sustaining, but as some exogenous thing that is not a part of the economy... so those evil commodities somehow exist as a threat to the economy... if the prices of commodities (only) are ever allowed to change ? Sounds just about the same as what Joe Biden sounds like in addressing the oil and gas industries... Could have noted that instead as: The Fed created disruptions in the economy pose a threat to the continued uninterrupted supply of commodities... citing labor shortages and rising prices of inputs as driving costs higher... higher input costs also being driven by excessive printing of money creating inflation... while the purely Fed imposed withdrawals of liquidity are disrupting the function of the commodity markets. And, all that, taken together, is damaging the economy by: imposing higher transaction costs and less liquid markets; by inflation forcing input costs and prices higher; creating threats of shortages as the ongoing price suppression applied under those conditions prevents profitable production... so reduced production... as it disrupts distribution, and directly drives reductions in supply... at the same time that supply is under attack on other fronts... through the deliberate obstruction and destruction of existing supply chains. it appears the Fed's goal... is sustaining a deliberate destruction of supply... perhaps consistent only with their goal in killing off smaller competitors and aggregating industry into fewer and fewer giant monopolies... extending the globalist mercantilist model well beyond the point of fragility, even as it is already breaking ? But... suddenly, it appears someone today finally noticed there might be a problem with that: Yellen Cautions EU On Russian Oil Ban: 'More Harm Than Good' The problem they see... has nothing at all to do with Russia changing customers... selling its oil to India and China instead of Europe meaning... the sanctions won't really hurt Russia that much anyway... but will hurt both Russia and Europe... for no real reason in any benefit in result... other than virtue signalling ? There's more of a long term benefit than that... in Europe now removing themselves from dependency on a supplier who is unfriendly... as Russia is to Europe. But, there's not any short term economic advantage in that change... which has to be seen as a cost long being imposed, only being recognized now, in result of unwinding that dependency they're now suddenly seeking to avoid. Yellen's focus, though... is that disruptions cause shortages... shortages cause higher prices... and higher prices mean selling less doesn't hurt producers... So, it appears a break through... that Econ 101 level awareness... has reached the Treasury... Perhaps within the yer... it will begin to filter out to the White House and the Fed... that if you want lower prices... you need to make more... and to make more of something.... you shouldn't do any of what the White House and the Fed are doing, as that is the opposite ?