Krugman: Rising commodity prices have nothing to do with Fed money printing

[Camtender]

Re: Krugman: Rising commodity prices have nothing to do with Fed money printing

What about this Krugman?

From Turk

http://www.fgmr.com/not-only-commodi...inflation.html

Not Only Commodities are Signaling Hyperinflation –
January 15, 2011 – The rise in commodity prices over the past several months has been unrelenting. Equally unrelenting has been the stream of central bank apologists aiming to re-direct the blame for soaring prices to almost everything imaginable except the real cause, which of course is unrestrained money printing.
Here is a chart that shows rising prices that cannot be blamed on bad weather, failed crops, global warming, a new ice age or sunspots. This chart of the S&P 500 Index shows a near perfect correlation to the Federal Reserve’s money printing, a/k/a “quantitative easing”.

S&P%20500%20and%20quantitative%20easing%2014%20Jan%202011.gif


The S&P Index and other stock indices like the Dow Jones Industrial Average are not rising because of better economic conditions or an improved outlook for economic activity. Stock prices are rising because of money printing, just like they did in the early days of the hyperinflations in Weimar Germany, Argentina, Zimbabwe and every other country ravaged by misguided government and central bank policies.

[flintlock]

Re: Krugman: Rising commodity prices have nothing to do with Fed money printing

I believe this uses a massive amount of copper.

http://en.wikipedia.org/wiki/High-speed_rail_in_China

More copper than the US was using during the housing/construction boom? (How do we get stats on exactly how much copper is consumed worldwide annually?) I doubt the change in use equals the wild swing in price. There has to be more to it. I'm paying nearly 2x for wire since early 2009. World usage has not changed that much.

Found this article attributing the Copper ETF.
http://tradingstocks.me/physical-cop...10000-per-ton/

Construction requires copper, and even the idea of physical copper ETFs has created something of a microstorm in the metals markets. JPMorgan and BlackRock iShares have started moving forward with their own individual proposals to launch ETFs that would store and warehouse physical copper.

The more money the copper funds control, the more copper the funds would be stuffing in their warehouses. Obviously, that would take copper off the market that could otherwise be used for meaningful construction projects.

[touchring]

Re: Krugman: Rising commodity prices have nothing to do with Fed money printing

Have you seen this?
http://www.itulip.com/forums/showthr...ilton-Shanghai

They are building coruscant, and on top of that, new high speed rails criss crossing the country tens of thousands of miles.

High speed rails are often elevated, as you can see below, so it's like building a bridge that is tens of thousands of miles long, just imagine the amount of copper and steel required. On top of that, the rails must be lined with electric fencing to prevent sabotage - the electric fencing will run twice as long as the rails.

More copper than the US was using during the housing/construction boom? (How do we get stats on exactly how much copper is consumed worldwide annually?) I doubt the change in use equals the wild swing in price. There has to be more to it. I'm paying nearly 2x for wire since early 2009. World usage has not changed that much.

Found this article attributing the Copper ETF.
http://tradingstocks.me/physical-cop...10000-per-ton/

[Chomsky]

Re: Krugman: Rising commodity prices have nothing to do with Fed money printing

Dave Stockman: Bernanke's [and Krugman's] assertion that Fed printing has nothing to do with commodity price spikes "just not credible" (see 8:00 mark):

http://www.cnbc.com/id/15840232?video=1780974568&play=1