It's interesting to see that open interest has surpassed its 2008 highs for corn, wheat, and soy, yet all three are below their 2008 price highs. It looks like commodity speculation is experiencing diminishing incremental returns.
Yes. The dollar is about to cross above its 100 day MA, T bonds bounced up off support on Fri, and equities are below the 10 day MA. This is looking like the beginning of a strong deflationary trend.
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It's interesting to see that open interest has surpassed its 2008 highs for corn, wheat, and soy, yet all three are below their 2008 price highs. It looks like commodity speculation is experiencing diminishing incremental returns.
Silver speculators take a bath
http://worldhousingbubble.blogspot.com/2011/05/warehouse-financing-scam-in-china.html
Depending on how widespread this is (and anecdotally it looks very widespread) this could cause a tidal-wave selloff.
That is interesting. I am going to look at GSI, a Chinese steel company, as a short idea.
For what it is worth, I toggled back to deflationary today.
Yes. The dollar is about to cross above its 100 day MA, T bonds bounced up off support on Fri, and equities are below the 10 day MA. This is looking like the beginning of a strong deflationary trend.
Your post was good BTW.
Deflation will be a refreshing change. Hasn't inflation gotten tedious?
CP,
Deflation will be a refreshing change. Hasn't inflation gotten tedious?
I-Bonds bought today pay at a 4.6% annual rate for the next 6 months thanks to hindsight inflation (with a 0.0% fixed rate over inflation).
I-Bonds can never deflate, even month to month but yet are still tied to inflation as it appears.
In theory, 0.0% I-Bonds can therefore pay more than 0.0% over inflation if we keep toggling between inflation and deflation.
I still like I-Bonds.
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