Wednesday, September 22, 2010

News Flash – Inflation ALERT.

Global food risk from China-Russia pincer

There is a widely-held view that roaring "agflation" and record gold prices signal inflation, evidence that ultra-loose monetary policy in the US and Europe is leaking excess liquidity into the world. Japan is the latest country to boost liquidity, launching "unsterilised" yen sales.

Posted by mark @ 07:30 PM (1362 views)
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13 thoughts on “News Flash – Inflation ALERT.

  • Again, for the hundredth time….”Hyperinflation, food shortages.”

    There are times when I wished I was wrong.

    The fool on the hill.

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  • Or you could just look at gold, which is at yet another record high today.

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  • Just don’t tell the deflationists – it isn’t in the plan.

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  • News Flash-Deflation ALERT. If you read the last paragraph there is every chance that extra money spent on food is then not spent on “stuff” including housing leading to the unstoppable deflation of non-food items.Food inflation due to the westernisation of Chinese diets is not going away. As a farmer at least 10 years ago the HGCA were telling us that China would be our future market -their example was simply a chicken sandwich,wheat for the bread,wheat for the cow for the milk for the butter,wheat for the chicken probably 10 or 15x more wheat than if they just ate some rice.They’ve now got the taste for it-I can’t imagine KFC shutting down here or the US because their customers would rather spend their cash on pwoperdee and then only have enough cash left for some rice.

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  • we are in uncharted waters. gold price is an indicator of uncertainty, nothing else

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  • fallingbuzzard,

    I’m sure you get that idea from clueless mainstream analystis but as Peter Schiff quite rightly says, the price of Gold isn’t a sign of uncertainty. People investing in Gold are CERTAIN that Governments and central banks are doing the wrong thing and that is why he recommends buying Gold. Gold has been rising for the last 10 years but mainstream analysts (who are always behind the trends by years) have only started commenting on the price of Gold recently because it is making the NEWS more often.

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  • So estrader, did you decide whether to buy gold in the end?

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  • HP, I have been making other investments for the last years or so and now I am thinking of buying some physical gold and keeping it myself. I have always liked gold.

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  • I have always liked gold.

    Me too. I am definitely looking at getting some more, though I think I will wait for all the interest to die down a little bit. I would buy at £750 to £775 an ounce, though I don’t think I would buy around the £800 mark – it’s a bit too high for me. One thing you might want to bear in mind, is that there is no capital gains on UK one ounce britannias; also silver is still looking like a great buy.

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  • I have been buying silver 🙂

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  • “One thing you might want to bear in mind, is that there is no capital gains on UK one ounce britannias”

    I didn’t know that! This solves my problem. I just had a look and the 1 ounce is selling at only a slight premium above bullion. I can buy Gold coins and keep them at home and insure them under home contents as coin collection. Thanks HP!

    P.S I bought the commerative 1998 world cup coins which were gold and silver.

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  • estrader: I hope that Schiff is a better politician than an investor.

    Gold is not going up because of any of the reasons that Schiff defends. Nor is China decoupling as will become patently obvious when Congress starts to intrude. Gold is going up firstly because (1) Europeans are making anti-Euro trades, (2) Increasing risk of protectionism (3) China’s aggression in the currency/gold markets, (4) Seasonal factors (and algos).

    But at some point the goldbugs are going to discover that the greater fool theory applies to them too.

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  • I didn’t know that! This solves my problem. I just had a look and the 1 ounce is selling at only a slight premium above bullion. I can buy Gold coins and keep them at home and insure them under home contents as coin collection. Thanks HP!

    You’re very welcome.

    P.S I bought the commerative 1998 world cup coins which were gold and silver.

    Sounds good – I guess you already know this – but as a general rule, it’s best to avoid numismatic coins i.e. collector coins, which are priced on their rarity – as opposed to their gold content. The best thing is standard one ounce bullion coins, from Baird or ATS bullion.

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