Dollar Pimp

The Market Bubble Is About to Pop

It's not just the monetary inflation (money printing) that will cause commodities to rise, but production destruction. All that capacity doesn't sit around idle wallowing in depressed prices. Cap ex budgets get slashed, weak hands get flushed and before you know it, demand comes roaring back (V-shaped recovery, right?) to find supply has left the building.


On Aug 12 09:13 AM WD216 wrote:

> I notice many of the people commenting refuse to believe that commodities
> can rise sharply despite a slowing or flat economy. Are they all
> too young to remember the 1970's? The term "stagflation" was created
> then.
>
> With the amount of money the government is spending, both through
> borrowing and printing there is an absolute certainty that inflation
> will emerge. Any ECO101 course will teach you this. Thus the conclusion
> as per the article that commodities will soar and the economy will
> stagnate (due to the government being forced to "fight inflation").
> I disagree with the timing stated in the article and feel that this
> will begin in late 2010 and/or 2011. But the points in the article
> are certainly valid.

Smells Good: The Case for Natural Gas

As a flaming liberal addicted to conservative talk radio, I find it interesting when clowns like Glenn Beck and Rush Limbaugh rant about drilling in America as the solution for all our energy problems while simultaneously raving about socialism. Aren't they suggesting nationalization of the oil companies? They must be if they assume the drillers wouldn't sell their oil to the highest bidder (China comes to mind). I mean, that's the way capitalism works, right? We can't have it both ways people.