Philip Gvinter

Helicopter Ben Turns into Ballistic Missile

I don't see oil prices heading up above 50 as being sustainable. The demand destruction continues and OPEC is facing massive declines in revenue and will not cut production as members are all desperate to sell. Oil still has not seen its bottom which should be in the mid 30s with a sustainable intermediate term trading range in the 40s.

Helicopter Ben Turns into Ballistic Missile

I don't know what is sadder the fact that the Fed had to resort to this or the fact that people automatically throw up the inflation is coming doomsday banner before they actually take a look at what is going on and do some analysis.

All non government backstopped securitization facilities have now closed. The consumer is in serious retreat psychologically. Payrolls, the source of funds for 70% of domestic economic activity (70% is consumer spending consumers pay for purchases and debt service with their paychecks) are being slashed. The reduction in available credit (real supply of capital) is getting decimated.

Despite all of this the gold bugs and fear mongers continue to cry about inflation? What is going up in price? What asset class, product or service is showing pricing power and a shortage of supply? Where is this inflation magically going to come from?