Ben Bernanke money printing is beginning to have an impact.
Today's futures activity:
West Texas Intermediate crude oil is trading at $106.07 (+2.5%)
Gold is at $1757.20 up $31.30 (+1.85%)
Silver is at $34.35 up $1.13 (+3.47%)
Copper is at $3.8385 up $0.1305 (+3.53%)
Sugar is at $24.50 up $0.73 (+3.03%)
But, there is an opposing view. Paul Krugman sees deflation because P&G is distributing diaper coupons.
Is it going to have to come down to reminding Krugman that you can't eat diapers, new or otherwise?
"Is it going to have to come down to reminding Krugman that you can't eat diapers, new or otherwise?"
ReplyDeleteOr that in light of other skyrocketing expenses, folks are turning to cloth diapers in order to afford things like milk.
"Gold is at $1757.20 up $31.30 (+1.85%)"
ReplyDeleteAnd where is gold from its recent high? And silver?
Hey, let's cherry pick the prices we need to make our case!
I posted the following comment in the other post but it bears repeating:
DeleteHis comment is idiotic on many levels and I think you do a disservice to your site by giving it this much attention.
If Gene replies he will correctly point out that just because he highlighted a weakness in your argument, that doesn't necessarily mean he is in the deflation camp (or any camp) nor does his opinion of whether or not gold/silver will move higher have any relevance to your "cherry picking data to make your case."
What Gene will not admit to is that you have done no such thing. In a post prefaced with "TODAY'S price future changes" you correctly report on the price changes. As any regular reader of EPJ is aware, this is one of hundreds of posts in which you are making the case for
developing price inflation.
As you correctly point out, developing price inflation refers to what is coming. Not only is referencing where gold is in relation to its all time high, an example of the very thing Gene was criticizing you for - cherry picking your data! - it has absolutely no bearing on whether or not price inflation will begin increasing, from where we are today.
What is even more hilarious is that he again cherry-picks from this very one post. If we want to ignore the enormous body of work you have written the past 6 months making the case for coming price inflation and erroneously treat one short post titled "today's price future changes" as being emblamatic of your entire argument for coming price inflation, (which obviously is absurd) he cherry picks even further by ignoring the other commodities you listed in the post and cherry-picks only gold/silver!
Which he then arbitrarily decides to compare to their all time high. Why not where they were 30 days ago? Or 60 days ago? In a case for what is occurring now and will increase in the future, one would think ignoring the trend and focusing on the all time high is about as helpful as dismissing an increase in yr/yr CPI change from 2010 -2011 because the CPI rose much faster during stagflation of the 70s...
Thank you for saying it. Callahan is strange character, always see him creeping around Rothbardian blogs and suddenly bursting out something stupid.
DeleteSomething stupid that he thinks is extremely clever. He reminds me of a punk teenage boy that thinks he is a bad-ass but is really a wimp. You'll notice he comes in, types up dumb one-liners, and then runs. He has serious mental issues.
DeleteGene, I think gold is up from 250 dollars in the last 10 years.
ReplyDelete