There is no inflation... there is no inflation... there is no inflation

[bart]

There is no (asset) inflation... there is no (asset) inflation... there is no (asset) inflation...
Om mani padme hummmmmmm... ;-)

The correlation between Fed credit and the S&P 500 is rather striking.












Very unusual large spike (~$300b) in repos last week results M3 money supply growth at over 11% annually.
And the large growth since about mid 2012 also speaks to future inflation.

[c1ue]

Re: There is no inflation... there is no inflation... there is no inflation

And so the ongoing descent into Kremlinology (Fedology?) continues.

[ProdigyofZen]

Re: There is no inflation... there is no inflation... there is no inflation

There is no (asset) inflation... there is no (asset) inflation... there is no (asset) inflation...
Om mani padme hummmmmmm... ;-)

The correlation between Fed credit and the S&P 500 is rather striking.












Very unusual large spike (~$300b) in repos last week results M3 money supply growth at over 11% annually.
And the large growth since about mid 2012 also speaks to future inflation.

Hum, this looks interesting..... but who are these 25 non-guests lurking in the forums.

Why not just sign up?

I also question the hundreds of people who read the articles here and never comment. I assume some can be explained by not wanting to post due to being in "learn" mode over "contribution" mode but that leaves a large percentage of people that I still wonder who they are......

[verdo]

Re: There is no inflation... there is no inflation... there is no inflation

Hum, this looks interesting..... but who are these 25 non-guests lurking in the forums.

Why not just sign up?

I also question the hundreds of people who read the articles here and never comment. I assume some can be explained by not wanting to post due to being in "learn" mode over "contribution" mode but that leaves a large percentage of people that I still wonder who they are......

I was a lurker for a while myself, but its more enjoyable to get involved with the conversations if you really want to learn. Most are probably in learn mode as you say. I'm sure some of them also work for the IRS, just scoping out to see who they will take gold profits away from when SHTF. They will probably come for select premium members first

[bart]

Re: There is no inflation... there is no inflation... there is no inflation

If gold goes down to $900, I'll sell some and take a loss for the IRS. ;-)
Perhaps I should post my CPPI for the BLS? ;-)

Fine with me that there are lurkers, beats many that aren't even trying to learn.



Some grins: Blast from the past - "Rally time" (flash file from the late 1990s)



And for some redeeming social value, the picture of total railroad transportation loads. Not looking so good, trend wise.

[ProdigyofZen]

Re: There is no inflation... there is no inflation... there is no inflation

I was a lurker for a while myself, but its more enjoyable to get involved with the conversations if you really want to learn. Most are probably in learn mode as you say. I'm sure some of them also work for the IRS, just scoping out to see who they will take gold profits away from when SHTF. They will probably come for select premium members first

That made me laugh on the IRS comment.

I suspect a large portion work at hedge funds and asset management firms/banks.....

[jspiers]

Re: There is no inflation... there is no inflation... there is no inflation

Reminds me of Steve Keen's chart comparing margin debt to the Dow over the past 60 years: http://www.businessspectator.com.au/...en-margin-debt (See Figure 8)

[bart]

Re: There is no inflation... there is no inflation... there is no inflation

And so the ongoing descent into Kremlinology (Fedology?) continues.

Or Fedogogy? ;-)



And another that tracks quite well:








How many know that the Fed can, totally legally, buy foreign bonds?

[ProdigyofZen]

Re: There is no inflation... there is no inflation... there is no inflation

Reminds me of Steve Keen's chart comparing margin debt to the Dow over the past 60 years: http://www.businessspectator.com.au/...en-margin-debt (See Figure 8)

and a first post! Welcome!

[charliebrown]

Re: There is no inflation... there is no inflation... there is no inflation

A warm welcome from me too!.

[astonas]

Re: There is no inflation... there is no inflation... there is no inflation

A warm welcome from me too!.

+1, the more, the merrier!

[c1ue]

Re: There is no inflation... there is no inflation... there is no inflation

Or Fedogogy? ;-)

Actually, fedalism is probably more accurate (feudalism, but via central bankers)

[shiny!]

Re: There is no inflation... there is no inflation... there is no inflation

Reminds me of Steve Keen's chart comparing margin debt to the Dow over the past 60 years: http://www.businessspectator.com.au/...en-margin-debt (See Figure 8)

Welcome, jspiers! Nice chart. Looking forward to more of your posts.

[c1ue]

Re: There is no inflation... there is no inflation... there is no inflation

Reminds me of Steve Keen's chart comparing margin debt to the Dow over the past 60 years: http://www.businessspectator.com.au/...en-margin-debt (See Figure 8)

I'm not so clear how useful this is - particularly margin debt as a percentage of GDP.

For one thing - a clear implication of the above chart is that the Dow is a function of GDP (GDP -> margin debt -> Dow).

Is this such a ground shaking concept?

In contrast, the Fed credit in bart's chart varies by 50% in a much shorter time frame...

[EJ]

Re: There is no inflation... there is no inflation... there is no inflation

There is no (asset) inflation... there is no (asset) inflation... there is no (asset) inflation...
Om mani padme hummmmmmm... ;-)

The correlation between Fed credit and the S&P 500 is rather striking.

The Fed is making no attempt to hide asset price inflation. To the Fed the above chart is a Mission Accomplished chart.

Bernanke has repeatedly explained in press conferences that the point of QE is to inflate asset prices.

The economic theory behind this, as I've explained in several articles, is that aggregate demand is partly a function of household balance sheets. If household balance sheets are growing then so is aggregate demand. As household balance sheets in the U.S. are predominantly stocks and bonds, if the prices of stocks and bonds can be inflated then household balance sheets will grow and aggregate demand will increase.

You chart shows that the strategy is working. The chart below shows the causation in more detail up to the point of "showing" an increase in aggregate demand -- not shown, for obvious reasons.

By the way, anyone notice what the Fed has been doing with excess reserves lately? The Fed will be whining about deflation presently as cover for the next QE or other monetary trick from the bottomless bag.