tag:blogger.com,1999:blog-6616959642391988608.post2259923574810721083..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Commodities reach new all-time highsScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-6616959642391988608.post-87317091406221112612010-09-27T17:54:01.575-07:002010-09-27T17:54:01.575-07:00Re: Japan's deflation. Note a very important d...Re: Japan's deflation. Note a very important difference between Japan and the U.S.: the Japanese yen has been rising against virtually all currencies for years, whereas the dollar has been falling. Very strong currencies reflect very tight monetary policy. Very weak currencies the opposite, which is why weak currencies and rising inflation go hand in hand.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19294027788246595962010-09-27T17:33:21.720-07:002010-09-27T17:33:21.720-07:0027 August 2010
Japan's struggle with deflati...27 August 2010 <br /><br />Japan's struggle with deflation worsens as prices fall <br /><br />Consumers hunting for bargains in Japanese shopping centres have seen months of falling prices Japan's core consumer prices index fell for the 17th month in a row in July, underlining the country's entrenched problems with deflation.<br /><br />The index, which excludes fresh food, fell 1.1% Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-42512291663100182662010-09-27T16:01:50.017-07:002010-09-27T16:01:50.017-07:00Marmico-
That is an interesting story. There are ...Marmico-<br /><br />That is an interesting story. There are also reports of Indian demand for gold tapering off.<br /><br />That could mean we are building into a glut--what will the inflation-worriers do if gold starts to go back down? <br /><br />Gold, of course, has been a rotten investment for years at a stretch, notably after its peak in the 1980s.<br /><br />We are still down from that peakBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-92099826031013370722010-09-27T15:30:42.187-07:002010-09-27T15:30:42.187-07:00Or those Turks fear inflation.
Don't think so...<i>Or those Turks fear inflation.</i><br /><br /><a href="http://www.hurriyetdailynews.com/n.php?n=gold-no-more-the-popular-choice-of-investment-2010-06-04" rel="nofollow">Don't think so</a>.<br /><br />Next.marmicohttps://www.blogger.com/profile/08277071086056574486noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20500090770011753892010-09-27T15:09:54.167-07:002010-09-27T15:09:54.167-07:00Peak gold?
Maybe so.
Or those Turks fear inflati...Peak gold?<br /><br />Maybe so.<br /><br />Or those Turks fear inflation.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-33864402606356077712010-09-27T14:52:09.112-07:002010-09-27T14:52:09.112-07:00Peak gold, not plastics, wool or sugar Benji!<a href="http://www.theglobeandmail.com/globe-investor/investment-ideas/youve-heard-of-peak-oil-how-about-peak-gold/article1532444/" rel="nofollow">Peak gold</a>, not plastics, wool or sugar <a href="http://www.youtube.com/watch?v=m_jmDscGi7E" rel="nofollow">Benji</a>!marmicohttps://www.blogger.com/profile/08277071086056574486noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-66453708673312196402010-09-27T13:43:50.196-07:002010-09-27T13:43:50.196-07:00It is always amazing to me who actually buys gold....It is always amazing to me who actually buys gold. Evidently, Indian jewelry buyers. Other odd countries pop up as major buyers of gold, including Turkey(explain that, anyone).<br /><br />"World’s top 10 buyers of gold<br /> <br />The average global demand for gold in the past 10 years has been mainly for jewellery at 76 per cent, followed by industrial applications of 14 per cent and 10 Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-57965720670790068062010-09-27T11:14:21.327-07:002010-09-27T11:14:21.327-07:00Yep, rosin and lard are at record highs. I wonder ...Yep, <a href="http://www.crbtrader.com/crbindex/spot_current.asp" rel="nofollow">rosin and lard</a> are at record highs. I wonder if global trade in burlap and tallow dominates the energy complex. LOLmarmicohttps://www.blogger.com/profile/08277071086056574486noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-1207011194694681902010-09-27T10:22:43.649-07:002010-09-27T10:22:43.649-07:00Fitting...
"As long as the Fed keeps printin...Fitting...<br /><br />"As long as the Fed keeps printing and academia keeps rolling out new theories, the cleansing of the multiple booms created by Fed interventions will continue for years. Those operating in the here and now of the real world have figured out that they should be deleveraging and saving. That may be interpreted by policy makers as doom and gloom, but it's just good Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-40269065594983582172010-09-27T10:09:34.524-07:002010-09-27T10:09:34.524-07:00Scott,
Why are you amazed at Bernanke's view ...Scott,<br /><br />Why are you amazed at Bernanke's view of the world? This is the same guy that completely botched the call on the housing market and banking system.<br /><br />I'm surprised you still have faith in a board of 10 or so men/women to effectively manage a $12T economy by simply printing more paper year after year. <br /><br />There is ample evidence to suggest the Federal Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-48636122198257920462010-09-27T09:46:39.251-07:002010-09-27T09:46:39.251-07:00Benji's "we may have deflation now" ...Benji's "we may have deflation now" remark brings to mind <a href="http://scottgrannis.blogspot.com/2010/05/deflation-and-inflation-are-alive-and.html" rel="nofollow">this chart by Scott Grannis that shows both inflation and deflation!</a> If consumer good prices go up with stronger commodity prices and weaker dollar then both goods and services climb.Buddy R Pacificohttps://www.blogger.com/profile/12737107556268024013noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-8448801997044368112010-09-27T09:24:22.850-07:002010-09-27T09:24:22.850-07:00Also, remember, the Boskin Commission (echoed by M...Also, remember, the Boskin Commission (echoed by Milton Friedman) found that the CPI overstates inflation, perhaps even by as much as 1 percent. A recent American Economic Review paper echoed this finding. <br /><br />We may be in deflation now.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20894181842814904452010-09-27T09:22:16.104-07:002010-09-27T09:22:16.104-07:00Scott-
The answer is obvious--Japan has had defla...Scott-<br /><br />The answer is obvious--Japan has had deflation, on and off (on again) for 20 years. Right now they have deflation in Japan. <br /><br />Ergo, large economies can experience deflation concurrent to some inflation in global commodties markets.<br /><br />Especially after a real estate depression, and weak aggregate demand--like the Japan and USA. <br /><br />Why is this so Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-68620676947318803122010-09-27T09:18:41.348-07:002010-09-27T09:18:41.348-07:00I don't think he's making the argument tha...I don't think he's making the argument that there are no problems with the economy. He's making the argument that there is no risk of a deflationary spiral -- monetary policy is accomodative and there isn't any evidence of deflation in commodity prices or any of the tradtional measures of price levels (like the CPI). If there are risks to growth, it's more like 1970s Mike Eliasonhttps://www.blogger.com/profile/15035227065407574760noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-64503923248997102722010-09-27T06:20:18.879-07:002010-09-27T06:20:18.879-07:00Summer of 2008 as a sign that everything is all ri...Summer of 2008 as a sign that everything is all right? Strange call. Funny enough oil is trading in the 75-79 range, and is slightly off (YoY). I would venture that investors in many part of the world (and I mean China here) are looking at commodities as a store of value.<br /><br />The one item that doesn't seem to fit the mold in oil... considering the weakness of the US dollar.Frozen in the Northhttps://www.blogger.com/profile/04901959687094626879noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-30774397073589283852010-09-27T06:15:28.697-07:002010-09-27T06:15:28.697-07:00This is a wild and baseless assertion, to make the...This is a wild and baseless assertion, to make the claim that all is well because commodity prices are increasing...<br /><br />Did they not do the exact same well into the summer of 2008 just as the globe was about to melt-down into financial chaos?<br /><br />Since you know the answer is 'yes', drawing such optimistic and blanket conclusions is very dangerous, like most of your advice Unknownhttps://www.blogger.com/profile/14606454567687345519noreply@blogger.com