Headlines From 2008: "Zimbabwe Stock Exchange Soars As Others Crash"

Submitted by Tyler Durden on 11/04/2010 08:21 -0500

While markets across the world have been crashing, the Zimbabwe Stock Exchange has being seeing record gains as citizens turn to equities to protect their money from the country's hyperinflation. The benchmark Industrial Index soared 257 percent on Tuesday up from a previous one day record of 241 percent on Monday with some companies seeing share prices increase by up to 3,500 percent. But before Wall Street traders start packing their bags and heading south, they should bear in mind that these figures are just another representation of Zimbabwe's collapsing economy and are almost meaningless in real terms. Zimbabwe, once a regional breadbasket, is staggering amid the world's worst inflation, a looming humanitarian emergency and worsening shortages of food, gasoline and most basic goods. Inflation is at 231 million percent, but some experts put it more at about 20 trillion percent.

Food Price Rises Reach Retail Level

Posted: Nov 04 2010     By: Dan Norcini      Post Edited: November 4, 2010 at 10:45 am
Filed under: Trader Dan Norcini
Dear Friends;
This morning, the Dow Jones news wire carried a story from the Wall Street Journal dealing with the rise in food prices. We have been repeatedly warning about this for some time now as the futures markets reflect the cost at the wholesale level. It was just a matter of time before the inevitable price rise hit at the retail level. Here is a short excerpt from that story:
Food Sellers Grit Teeth, Raise Prices
From THE WALL STREET JOURNAL – An inflationary tide is beginning to ripple through America’s supermarkets and restaurants, threatening to end the tamest year of food pricing in nearly two decades. Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald’s Corp., Kellogg Co. and Kroger Co. have begun to signal that they will try to make consumers shoulder more of the higher costs for ingredients.
Note also the sharp move higher in the CCI as it continues moving towards its 2008 peak. This is significant because it took crude oil prices above $140 to drive the CCI to over the 600 level back then. Today crude is trading below $90 and yet the index is within striking distance of that all time high. The food component of this index, along with the metals, is driving it higher. Crude oil is attempting an upside breakout which if it accomplishes a push through $87, will easily take the index into a new all time high.
Translation – the meltdown in the US Dollar, thanks to the Fed’s lunacy, is going to strongly impact disposable income as consumers will be forced to pay higher prices for the essentials of food and energy. Fed governor Hoenig, will be the one vindicated by history as we observe firsthand the legacy of nearly unlimited money printing.
Click chart to enlarge in PDF format with commentary from Trader Dan Norcini

 

Goldman: QE2 Will Continue Into 2012, Will Be Over $2 Trillion, Models Do Not See Rate Hike Until 2015

The Repercussions Of Nearly One Trillion In QE

Posted: Nov 03 2010     By: Dan Norcini      Post Edited: November 3, 2010 at 11:24 pm
Filed under: Trader Dan Norcini
Dear Friends,
The price action in the Dollar after today’s release of the FOMC statement from their early November meeting generated a great deal of price volatility in the currency markets this afternoon. When the initial knee jerk reactions were finished and the more sober-minded had some time to digest the repercussions of nearly ONE TRILLION DOLLARS of QE, the Dollar came under pressure which took it down below the 77 level which had temporarily been serving as downside support in front of today’s meeting.
The technical damage is becoming quite severe as it is now perched precariously above an important support level near 75. Judging from the fresh sell signals being generated by more than a few technical indicators, it is difficult for me to see how it can maintain its footing above this level barring a sudden and unexpected improvement in the various US economic statistical releases of the next couple of weeks. In short, it would not take much to see the Dollar drop through 75 and then plummet down towards 72, a level, which if broken, would prove to be a watershed moment for our nation.
I would suspect that we would see some sort of attempt to prop the Dollar on its first approach towards 72 but that would only stem the decline for a brief period unless the QE were withdrawn or the monetary authorities were to walk back on the size and scope of today’s announcement. That would of course necessitate a dramatic improvement in the economy which is why I cannot see that occurring.
It is my opinion that the US has long wanted to engineer a manageable decline in the currency on account of the now mathematically-impossible-to-ever-pay-back debt load that our nation has been saddled with. They will get their wish but at a terrible cost to the rest of us and to the nation at large as it watches its economic supremacy gradually fade. That will be the legacy of the Federal Reserve system and the contemptible monetary authorities who sold out our nation’s birthright for a bowl of stew.
Click chart to enlarge in PDF format with commentary from Trader Dan Norcini

Art Cashin FTW: "QE2 Is Beginning To Look Like An Open-Air Multi-Month Version Of The PPT"

 

King World News Confirms Goldman Sachs Has been Long Gold For Years, States $25.50 Is Silver Margin Call Threshold

 

Central Banker Lunacy Is Now Airborne, Contagious, Certainly Genocidal

Submitted by Tyler Durden on 11/04/2010 08:57 -05
 Only known prescription is infinite amounts of soon to be defunct paper currency. Side effects include WSJ rumor leakage, frontrunning, mass corruption, trade wars, protectionism, crony capitalism, hyperinflation and revolution.