Look up "competitive devaluation", Spinoza.

http://www.the-privateer.com/chart/g-mul....

Gee maybe the dollar index doesn't tell the whole story here!

Ahh, now this is what I've been waiting for, Karl. Thanks for speaking on the current status. I posted that link from msnbc in forex, the one where Keith McCullough blurts out almost immediately that "the biggest story in the markets today is the currency collapse currently underway." He seems to be well-informed, but it's hard to tell whether he is genuinely concerned about some new development, or rather has an agenda of his own whereby he's hoping to have some sort of impact on the markets by way of making such a balls-out statement?

Anyway, the facts seem well-supported in favor of a currency crisis. I just can't figure out which way they'll go with it or what in the hell I need to do about it. That's why we have tickerforum.

Here's the clip, although I'm sure you've all seen it:

http://video.cnbc.com/gallery/?video=190....

Hey, let's not forget that Ben and the president may decide it is time for everyone else to look bad. Bet there will be some nudging of US rating agencies to write up some nasty reports on other countries...

pietrtvl wrote..

...only legitimate way to gauge how much value the dollar has lost, is by asking yourself how many gallons of milk, gallons of gas or pounds of ground beef you can buy today with a dollar compared with a year ago?

When I was in high-school in the late 1960s, I had a job cleaning up scrap lumber and other construction debris around newly-constructed houses, for $2.00 per hour.

With that $2.00, I could buy 8 gallons of gasoline.

Today, a new college graduate with an engineering degree makes around $60,000 per year ... roughly $30 per hour.

With that $30 today, you can buy ... eight gallons of gasoline.

That means that today it takes a BS in Engineering to buy what I could buy forty+ years ago as an unskilled grunt laborer.

Pika and Bohemian:

What do you have to say now? Did Ben just drain 20 percent of QE?

Seriously?

Now you two look fairly ignorant. I told you the traders ran the price up and they'll run it down just as fast. Not benny boy. Remember that? Go read my post from yesterday.

Everyone should see how ignorant you two are.

Quote:

Restaurants are imploding because of rising commodity prices, not inflation. The problem is that there's a lot of capital chasing uso, gld, slv, /cl, /yg, etc. The more money chasing these instruments, the higher the commodity prices will go. Sure, there's an increase in money supply, but it hadn't tripled but the price of commodities has tripled. Don't blame Benny Boy, blame the stupid traders robbing everyone.

And where are the traders getting the money?

From their butt?:

Spinoza wrote..

Now you two look fairly ignorant. I told you the traders ran the price up and they'll run it down just as fast. Not benny boy. Remember that? Go read my post from yesterday.

Oh, Good Lord. The traders didn't run the price up, and they're not running it down.

The Bernank got the word from On High that gasoline prices were killing The Won's poll numbers. Hell, every time I made a transaction in public, I deliberately brought up the price of gasoline. Anywhere you went, it was the only thing people were talking about. Osama was forgotten 24 hours after he was dead. Check the freaking timeline, ditzboy.

Notice that they pulled the plug on oil on Thursday. Obama announces Sunday night that they squashed Osama like a bug, the White *****house waits excitedly all through Monday for a "Hail The Conquering Hero!" from the Merkun peeple, and NADA. Lead balloon. Epic thud. They think about that from Tuesday afternoon through Wednesday market close, then the decision is made. Somebody(ies) got a phone call.

Now, the question is, how long will they defend the dollar? Because if the market tanks for too long, the state pension funds will start sweating bullets over their returns. I'll have to ask someone else to weigh in with what brings in more tax dollars - a rising market (I know New York & California made plenty of tax dough on equities during the boom years) or rising commodities (I know the government rakes it in on oil taxes).

If the peasants hadn't started murmuring more loudly and discontentedly, we'd still be on our way up in oil. It's an easy way to stealth-tax the rubes - gasoline & food. I'm still not sure that they'll back off entirely. They might just decide to leave it a quarter below the magic number - $4.

I'm not convinced they understand that the paycheck-to-paycheckers can't handle both high gasoline AND high food prices.

Genesis says that the high food prices are baked in the cake for some time. I'm still long food, myself.

Spinoza, first off, they wouldn't be ignorant, they'd be stupid. Ignorance is when you don't know any better or of the facts presented. Pika and Bo know of which you are talking, they just don't believe you, thus, if wrong, they are stupid, not ignorant.

You said: "but the price of commodities has tripled" and you had listed oil, silver, gold, etc. From which point in time has any of these tripled??

Do you realize how leverage works? Do you understand the finite amount between Zero and the current price of the dollar and how it would not work on a 1:1 ratio with commodities?

Do you think if the dollar was 120 and Gold was 600, that gold would be 1200 when the dollar was 60? You'd be wrong. Do you think the dollar at 30 would have the 1:1 inverse effect for oil and commods? You'd be wrong again.

Aww...look. Karl wrote a Ticker just for Spinoza
http://market-ticker.org/akcs-www?post=1....

Ok,

Sure. Convince yourself you're correct in the face of facts that prove you're wrong.

Do I care? Nope.

I find it amusing.

There are two sides to a trade, no?


Steel, no which is why I Sao it can't be a pure dollar causality. The issue is that the dollar strength in /dx or forex us relative. So not only does it measure dollar strength or weakness, but that it only does so in relative terms. So, no it's not purely a dollar consequence, it can't be. Can it be a currency effect? Sure, in relative terms.

To claim commodity prices are a pure reflection of QE is stupidity. And why did I use ignorance? Because I got a strike for "insults" but apparently ignorant fits that bill as well.

So what it is is actually stupidity. And I'll take the other side of your trade any day.

What's amusing is people denying that price does not lie. You have proof where the leverage - that is, the UNFUNDED positions - were.

Further denial is a demonstration of insanity.