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Advisor

Thoughts on CRB and the QE whoo-whee

Dollar getting banged, comms up as China announces half a $trillion in new QE.

 

A though for perspective for those of us who quaintly still beleive in charts or a free market:

 

I'd submit for consideration the notion that the 500 CRB level more or less represents a triopwire for a possible global deflationary meltdown.

 

That would then trigger a response from someone on the Central Bank Tag Team, in this case the Chi Comms.

 

It's their turn.

 

 

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4 Replies
Advisor

Re: Thoughts on CRB and the QE whoo-whee

http://www.telegraph.co.uk/finance/china-business/11098178/Chinas-leaders-refuse-to-blink-as-economy...

 

Actually if you think about it, an interesting offset to credit tightening. China grew the fastest, greatest credit bubble in history, now they have the sysiphean task of trying to deflate it.

 

QE does serve as a from of cushion- supporting the bond market while simultaeously bring some form of standards to the credit market. Tough job, though- never been done before in a large economy without a steep recession.

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Advisor

Re: Thoughts on CRB and the QE whoo-whee

Well looks like they can buy some more soybeans with cheap money
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Advisor

Re: Thoughts on CRB and the QE whoo-whee

Pehaps.

 

Although I'd be willing to give decent odds to the notion that the commodity rehypothecation ponzi is a part of the credit squeeze and thus unlikely to resume any timew soon.

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Veteran Contributor

Re: Thoughts on CRB and the QE whoo-whee

Interesting world we live in.  Luxery is manipulating numbers(dollars) for your benifit.  Are we getting closer to global deflation.  CRB under 500?  When the luxuries gone, ya still gotta eat.  Commodities king?

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