Friday, February 11, 2011

Dow - Crack Baby

What happens when the market doesn't get its free money? 

Look at the dates...

Fed POMO (permanent open market operations) goes until Feb 9th then starts again today. What happened yesterday when the Dow didn't get its POMO?




There was no POMO yesterday AND....





Schedule starts again today and market continues the meltup.



Bottom line: The Fed can't monetize forever. What happens down the line when the market has to ween itself off of POMO? No one knows, but it won't be pretty. 


Wednesday, February 9, 2011

Flying Foodstuffs

Corn prices are set to surge!




"If revised Chinese import estimates by the US Grain Council are even remotely correct, look for corn prices of $6.80 a bushel at last check to jump by at least 15% in a very short amount of time. As the FT reports, "Corn prices – and with them, the price of meat – are set to explode if the latest import estimates from China are correct."

The US Grain Council, the industry body, said late on Thursday that it has received information pointing to Chinese imports as high as 9m tonnes in 2011-12, up from 1.3m in 2010-11."

Why is this a concern? Because "the US Department of Agriculture, which compiles benchmark estimates of supply, demand and stocks, forecast Chinese imports at just 1m tonnes in 2011-12." In other words, the whole forecast supply-demand equilibrium is about to be torn to shreds."


RICE - the most consumed food on the planet- experiencing the same thing.

Back on the verge of $16 and breaking out to the $20-24 level. We wonder how Egyptian protestors will feel when they realize that in the two weeks since the Egyptian revolution started in earnest, most foodstuffs have increased by another 15%+.



Bernanke's Speech 2-9-11

http://www.federalreserve.gov/newsevents/testimony/bernanke20110809a.htm

Full and Part Time Job Creation

Full and Part Time Jobs_1.jpg (1332×743)

Tuesday, February 1, 2011

US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month | zero hedge

US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month | zero hedge


The US Mint sells 6,472,000 ounces of silver....this is nearly 50% higher than any prior month in the Mint's 26 years of published sales history. This has occurred, despite supposed profit taking in the paper silver market in January. And just today, another 50k, were sold. It seems that physical buyers continue to enjoy the dip in paper silver that is providing them with an attractive entry point.

Inflation’s Impact on Emerging Markets - Fox Business Video - FoxBusiness.com

Inflation’s Impact on Emerging Markets - Fox Business Video - FoxBusiness.com