Premarket Summary: Inflationary Hysteria

[monkeybird]

Premarket Summary: Inflationary Hysteria

One word (well technically two) can describe what is going on in the electronic pre-market arena right now: inflationary hysteria. Gold is at a new record, wheat is surging, corn is at highest since 2008, crude at a new 30 month high, silver is at $41.10 - a new fresh post Hunt high, beans surging, etc, etc, etc. Essentially everything is bid, following news first reported on Zero Hedge that PIMCO is betting the farm that either inflation is about to go parabolic and force bondholders to dump everything, or that the Fed will have no choice but to pursue another round of QE, sending gold to $2,000 and unleashing the Weimar endgame.

Noting that these are RAW prices - imagine what they will be when the reach us.

[Cimarron]

I was mentioning the story of the 'Veggie bandits' from the other thread to my MIL and we were discussing the price of everything going up when she asked "What's going on with cotton"? She is a retired seamstress who still makes clothes for the family and close friends. Recently her quilting club has had to really shop to get a good deal on bulk material saying that it has tripled in price in the last year and they are shopping for 'remnants' ( small odd shaped pieces of material that quilters can use ).

I recall a story, which I can't find the link, that China was paying more from cotton producers because they were raising their prices (don't remember why). China was going to suppress the price for their products to Walmart for as long as they could, and then W-mart would suppress their price as long as they could.....well you get the picture.
I think we are nearing the end of market price suppression.

[monkeybird]

I know the textile industry in the U.S. is almost extinct. I sew, not clothing although I can, but drapes, bedspreads etc for my own use. I particularly like a discount fabric store in Fayetteville, Tenn. I visited that store a lot. When I knew I was moving back to Florida, I visited the store to stock up. Was I ever surprised. I had not been there for over a year, and all those wonderful fabrics that use to sell at a great discount price, was so high I didn't purchase as much as I had intended to. I spoke with one of the clerks and she told me that the last textile manufacturer of cotton fabrics was closing and that everything they were getting lately were from China. Seem when you add the transportation charges etc - imported fabric was more expensive. Of course, the people we lost their jobs due to the closing of U.S. mills. don't seem to have mattered to our governmental trade policy.

[Patriotic Sheepdog]

I have watched the markets for years now and I can tell you it is acting weird over the last year or so and seems to get worse daily. I don't have proof, but I would not be surprised if the FED was manipulating the market to make it look like there is a "recovery" so more sheeple will invest only to see their investments disappear. Like I've read other places, the biggest bubble today is the dollar bubble. Be careful where you put yor cash. Banks are still being closed by the govt. Tangibles my friends, tangibles. That is the place to be now.