patrick.net

From:

"Recovery! Recovery! Recovery!"

APOCALYPSEFUCKisShostikovitch says

Food prices got you down?

EAT YOUR NEIGHBOR!

Cannibal Anarchy will deliver us from food price inflation!

Will eating your pay check make wages rise?

smaulgld says

From:

"Recovery! Recovery! Recovery!"

Add in rising housing (rising home and rental costs) gas prices and health care premiums

A decline in the value of the dollar will accelerate price inflation
http://patrick.net/?p=1247488
without any corresponding benefits.

Call it Crazy says

What happened here today?

*

They are saying its the geopolitical tensions in Ukraine.
Short term maybe the reason.
But gold when up from $300-$1900 with out any from 2002-2011.
Indeed gold has been up every year since 2001 except last year and is up again this year.
Gold goes higher because of incessant debasement of the dollar via QE, ZIRP and multi trillion deficits

But with 4 trillion in QE you would expect more.

Does this mean Yellin will have to raise rates?

I prefer this chart

http://smaulgld.com/live-gold-prices/

indigenous says

But with 4 trillion in QE you would expect more.

Does this mean Yellin will have to raise rates?

the fact that we have rising home prices in double digits is directly from $4 trillion- ditto for food and energy prices.

It will only get worse as rates rise a little and some of that money gets loaned out and velocity increases.

The real issue is a decline in the value of the dollar by 5-15% which will impact import prices and therefore consumer prices
There is nothing the fed can do about that.

Just another bric in the wall http://patrick.net/?p=1247488

smaulgld says

The real issue is a decline in the value of the dollar by 5-15% which will impact import prices and therefore consumer prices

Grocery store prices are not imported.

indigenous says

smaulgld says

The real issue is a decline in the value of the dollar by 5-15% which will impact import prices and therefore consumer prices

Grocery store prices are not imported.

LOL- take a look at the produce sometime- Chile, Mexico etc,

BUT grocery prices are ALREADY up without a dollar decline

What will go up is electronics, refrigerators, cars -stuff you get at Walmart-anything from China

smaulgld says

LOL- take a look at the produce sometime- Chile, Mexico etc,

But much is not...

smaulgld says

BUT grocery prices are ALREADY up without a dollar decline

From what then?

The government heavily subsidizes the farming industry. The price of oil is a factor. With 4 trillion being printed it is hard to believe that did not have some influence.

smaulgld says

What will go up is electronics, refrigerators, cars -stuff you get at Walmart-anything from China

Which will result in some on shoring.

indigenous says

Which will result in some on shoring.

From all those factories we have in the US just waiting to go back on line!
Any adjustment that happens even if it results in good will be painful

smaulgld says

From all those factories we have in the US just waiting to go back on line!

Any adjustment that happens even if it results in good will be painful

You bet. I'm not saying like it was, which is why I said "some".

You seem to think you have an in depth understanding of manufacturing? Most real estate agent do not...

China is going to go into the hurt locker for at least a while.

The biggest manufacturing country in the world BY FAR is the US.

indigenous says

The biggest manufacturing country in the world BY FAR is the US.

ABSOLUTELY incorrect-

It was true once. No more

Do you know the percentage of GDP that manufacturing is in the US?

BTW I am not a real estate agent.

China has a $3 trillion manufacturing base -the US just over $1 trillion- do your research.

If you don't wish to and want to insist the US if "BY FAR the biggest manufacturing country in the world" I'll post some links.

The US economy has been transformed into a service based and consumption based economy. Manufucturing is a pretty small percentage now.

We need big raises

John Bailo says

We need big raises

and they are not forthcoming, because company profits are up not due to increased sale but because of share buy backs.
Once that stops share prices will decline and the companies' share prices will reflect their truer value

smaulgld says

If you don't wish to and want to insist the US if "BY FAR the biggest manufacturing country in the world" I'll post some links.

LOL, I will explain why you ate wrong later, when I'm in front of a computer.

indigenous says

LOL, I will explain why you ate wrong later, when I'm in front of a computer.

Ok You can explain how Facebook manufactures stuff

smaulgld says

From:

"Recovery! Recovery! Recovery!"

Food and energy is not included in the core CPI.
It's the drought. We need a water pipeline from Canada to California to solve out water problems. We could also build lots of desalinization plants.
Higher minimum wages would also be a factor. To all those who supported higher minimum wages. Enjoy the high prices.

indigenous says

smaulgld says

From all those factories we have in the US just waiting to go back on line!

Any adjustment that happens even if it results in good will be painful

You bet. I'm not saying like it was, which is why I said "some".

You seem to think you have an in depth understanding of manufacturing? Most real estate agent do not...

China is going to go into the hurt locker for at least a while.

The biggest manufacturing country in the world BY FAR is the US.

gs.wsj.com/chinarealtime/2014/05/15/china-inc-starts-to-move-its-factory-floor-to-africa/

Diva24 says

indigenous says

smaulgld says

From all those factories we have in the US just waiting to go back on line!

Any adjustment that happens even if it results in good will be painful

You bet. I'm not saying like it was, which is why I said "some".

You seem to think you have an in depth understanding of manufacturing? Most real estate agent do not...

China is going to go into the hurt locker for at least a while.

The biggest manufacturing country in the world BY FAR is the US.

gs.wsj.com/chinarealtime/2014/05/15/china-inc-starts-to-move-its-factory-floor-to-africa/

And the shift will include shipping product back to china for their consumption

Strategist says

smaulgld says

From:

"Recovery! Recovery! Recovery!"

Food and energy is not included in the core CPI.

It's the drought. We need a water pipeline from Canada to California to solve out water problems. We could also build lots of desalinization plants.

Higher minimum wages would also be a factor. To all those who supported higher minimum wages. Enjoy the high prices.

And the higher home prices are because of the drought?
Ditto for higher gas and energy prices? Insurance costs too?

smaulgld says

And the higher home prices are because of the drought?

The pause in real estate did coincide with the drought.

smaulgld says

Ditto for higher gas and energy prices?

Damn Russia, damn Mid East, damn oil companies.

smaulgld says

Insurance costs too?

I don't why insurance is going up. Lets blame Obama.

Strategist says

smaulgld says

And the higher home prices are because of the drought?

The pause in real estate did coincide with the drought.

smaulgld says

Ditto for higher gas and energy prices?

Damn Russia, damn Mid East, damn oil companies.

smaulgld says

Insurance costs too?

I don't why insurance is going up. Lets blame Obama.

There is one reason for it and its the same reason gold has been up every year since 2001 except last year (its up again this year) is the Fed's reckless monetary policy

smaulgld says

There is one reason for it and its the same reason gold has been up every year since 2001 except last year (its up again this year) is the Fed's reckless monetary policy

Gold at $1,900 was clearly due to fed policy. Higher food prices are due to the drought. Crude oil which was priced at $147+ in 2008 is a lot cheaper now.

Strategist says

smaulgld says

There is one reason for it and its the same reason gold has been up every year since 2001 except last year (its up again this year) is the Fed's reckless monetary policy

Gold at $1,900 was clearly due to fed policy. Higher food prices are due to the drought. Crude oil which was priced at $147+ in 2008 is a lot cheaper now.

Prices of everything in 2008 were massively distorted
Rather then let them settle via the market, the Fed intervened creating ongoing distortions

And we havent seen the end of the fed's impact on the gold price

smaulgld says

And we havent seen the end of the fed's impact on the gold price

With tapering well under way, the best days of gold are probably over.

Strategist says

smaulgld says

And we havent seen the end of the fed's impact on the gold price

With tapering well under way, the best days of gold are probably over.

You might think that but when those $4 trillion extra dollars start to circulate and the demand for the dollar drops 5-10 pct due to "de dollarization" efforts
Well see greater price inflation and gold prices

US exports to Russia decline 34% http://www.zerohedge.com/news/2014-08-06/costs-us-exports-russia-collapse-34

smaulgld says

US exports to Russia decline 34%

And once again we see the brilliance of Smoot Hawley and BO.

indigenous says

smaulgld says

US exports to Russia decline 34%

And once again we see the brilliance of Smoot Hawley and BO.

Putin's playing poker with a weaker hand but obama is playing tiddlywinks

And as you stated somewhere an acceleration of the BRIC.

smaulgld says

US exports to Russia decline 34% http://www.zerohedge.com/news/2014-08-06/costs-us-exports-russia-collapse-34

"This will hurt us more than it hurts you."

indigenous says

And as you stated somewhere an acceleration of the BRIC.

a concerted effort by Putin, china to de dollarize was already under way before the crisis in Crimea.

You point re not trusting a communist currency is moot as they are both communist and have no issues exchanging each other's currencies instead of dollars which they trust less

Strategist says

smaulgld says

And we havent seen the end of the fed's impact on the gold price

With tapering well under way, the best days of gold are probably over.

Pretty sure that you can't just print $'s 24/7 365 for six year, taper and everything goes back to normal

If so the Fed should have started QE in 1913 not 2009

Strategist says

With tapering well under way, the best days of gold are probably over.

Because?... of real rates going up?
I don't see it happening.

The only thing that is bad for gold is real growth and lower inflation.
Pretty rare these days.

The faux recovery cannot pick up the slack of a Fed exit.