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"What Is Happening With Banks Is About To Ripple Through Financial Markets All Over The World
...
More recently, the US banking system visibly ran out of balance sheet space in September 2019, signalled by a crisis in the repo market. Shortly afterwards from February 2020, liquidity constraints crashed the US stock market, echoing the September-October 1929 phase ninety years before"
https://kingworldnews.com/what-is-happening-with-banks-is-about-to-ripple-through-financial-markets-all-over-the-world/
Ordinary people are noticing things happening -
"Why Now is the WORST Time to Buy a Used Car"
https://www.youtube.com/watch?v=bBB77QklWtw
At 3m 58s - he gets on to money creation and inflation. He says that people are putting their money into cars - used car prices are rocketing. He gives an example of one second hand car that is now £38,000, but a year ago the same model with the same mileage could be bought for £32,000. Hyperinflation is coming.
"BofA: "Transitory Hyperinflation Ahead""
https://www.zerohedge.com/markets/bofa-transitory-hyper-inflation-ahead
"Banks Start Freaking Out About Soaring Inflation, Which May Not Be "Transitory""
https://www.zerohedge.com/markets/banks-start-freaking-out-about-soaring-inflation-which-may-not-be-transitory
Technically, you do not even need to print currency to cause hyper inflation: a simple loss of confidence in the currency is all that is required. In the case of Weimar Germany, my understanding (which may not be 100% correct) is that the hyper inflation was not due to foreign-denominated debt, it was simply loss of confidence in the Mark (or the Rettenmark...I think the Rettenmark succeeded the Mark). Foreign countries refused to accept it & insisted on payment in GOLD.
The Roman Denari , effectively the world's first reserve currency (given its wide usage) started life as a 999-fine silver coin. Persistent re-smelting at lower purities effectively debased the currency until it was essentially worthless. You can actually determine the date of a Roman coin based on its silver content: the higher the purity, the older the coin.
The period that followed the Roman empire was known as the Dark Ages for very good reason. Collapse of any currency is a catastrophic event for its local people. Collapse of a WRC bodes ill for every man, woman & child on the planet. The lifecycle of most empires is intrinsically linked to the success of its currency.
"We need to distinguish high inflation and hyperinflation."
good point carvegyber
and you can see the media using "hyper-inflation" nonsense ...and folks buying into it...
BTB, you would only need to resort to the weimars hyperinflation if your debt is denominated in another currency you don't control. If your debt is in a currency that you print, then you simply reduce the spending to control the debt levels. The key word is control. If you have to repay in another, you can't print that currency so you are at the mercy and will be sucked into an ever spiralling fall in forex which feeds the hyperinflation. If you research every hyperinflation episode, you will see a foreign currency involved.
inflations of the 70s is not hyperinflation. Hyperinflation is 50% or more a month. We need to distinguish high inflation and hyperinflation.
Sorry for being an ass but i presume for use shareholder it good the shares will go up? Sorry for the USA joe has to pay a bit more
yes...but if you print the money you then have to sell the debt created....gilts, Treasuries etc .....and most people don't see those and so don't understand what problem they can turn out to be.....anyone saving for a pension probably does though...
The ball is in Biden's court...your move Joe
Carvegyber: simply not true. Currency printing is inflation. Mass currency printing is hyper-inflationary. There are plenty of examples throughout history. All of them, to be precise.
The game's a-foot...
Hyperinflation can't happen in countries like US, UK or EU because those countries borrow in their own currencies. It happens in Argentina or Turkey because their debt is denominated in USD.
CPI is up more than expected i.e inflation is higher than expected. BTD on metals prices as real yields are getting more and more negative. Bank of America are short 300m oz of physical silver ( loaned from JPM) so they need to talk prices down otherwise and gamestop style squeeze will crush them.
"so it bad?"
not good..but not unexpected ..due to supply chain issues after recent lockdowns....and as supply chains improve the recent pricE increases should steady..IMO
I would rather have a steady,controlled inflation situation from a growing economy than hyper-inflation..because hyper can spread beyond the US borders into Mexico, South America etc and that wouldn't be good IMO
Sorry, I thought the rise in CPI means the inflation going up? sorry, I'm just a novice to this whole thing...
Bank of America analysts
"it would take steady wage gains of 10-12% to push inflation to the levels of the 1970s & 80s..."..
" we still have 9.8 million unemployed workers "
" we expect most supply shortages can be resolved, wage increases are modest (and helpful long-term in any case), and there is no evidence of excess demand."
Yes, bad just this moment but this is actually the best time to pounce on gold, silver or Fres. PMs will bounce back very strongly next few days if the fed keeps their 'transitory' view and talk it down. Silver will bust through 28 when that happens.
so it bad?
CPI 4.2% in April (year on year) - expectation was 3.6%
The right wing American press are feeding whatever they can to put down any Biden attempts to have any success..... normal ... and the hyper-inflation story is one of them...
There has been a shortage of computer chips for months...try buying a new video card for your computer etc and you will find supply is short ..and prices of what stock is left ..high...
It don't matter how much you increase interest rates...the supply of those chips isn't going to get better for a while....
so..folks are merely adapting to the fact that supply is short....some folk will have to wait until supplies improve...simple fact of life ..cars are being produced without some of the electronic gadgetry
Now..you can give everyone a wage increase ...so they can afford the expensive video cards and chips that are left....but...even that doesn't change the fact that supply is short...
Having issues in the supply chain don't get magically solved just because you put up interest rates.....
What it might do is stop the dollar falling and curb the level of imports into the US ...but I doubt by very much...but ..sure..imports cost more as the dollar falls in value...
The biggest issue is to move to get the unemployment benefits down..reduce the handouts ..and get people back to work...in order to INCREASE SUPPLY
The US economy isn't working at full capacity ..it isn't even at full employment......but it is paying millions of people to be unemployed when there are jobs out there that need to be filled..jobs that increase supply of the goods and services required
I am interested to hear your views on the reaction to the CPLie numbers (real inflation is much higher than the one show by those meaningless number). Apart from that:
Higher CPI = Higher inflation = Higher Treasury yields = Should be higher commodities but given the recent silly trend lower commodities or higher commodities as it should be ? = Fres down independently for what ever reason
Low or equal CPI numbers = not higher inflation = Treasury yields drop = Higher commodities = Fres down independently for what ever reason