Time to kick some a#%, folks.


Hey now, you're an all star get your game on, go trade

Hey now, you're a trad-er get the show on, get paid

All that glitters is gold

Only shooting stars break the mold...

But it goes without saying they immediately reverse that and pop it up about the same amount it when down, from the 'breakdown' point. Just another game. It sure has been all over the place since that short-term high there. I can't imagine it won't be headed up now, though. All eyes are on the Thursday meeting when 'Dragh Queen' lays out how many trillion Euros he will illegally monetize (if you know anything about the EU constitution, German law, etc. the fact that it is illegal isn't even remotely in dispute. See here for just a taste: http://www.zerohedge.com/news/battle-begins )

Another little leg for the ES. A few more and it will be at a new HOD.

I haven't thought that this post and link would require any commentary until I have read that the other post by Jim, directly related to this one had been voted down.
I believe everyone in this forum can imagine what hyperinflation means in the economy as a whole, but I know that US and Western Europe readers have never experienced it. Poland of 1989/90 happens to be on zero-hedge list with 77% monthly inflation rate. I can remember this period clearly as I was 10 years old then. I did know nothing about economy then but I still remember how I felt understanding that my parents and my classmates' families struggled to make ends meet. It was the gloomiest period of my life, as almost nobody could be sure of their future well being, trust me.
Moreover, take into account that this is not only one record month, as inflation rate of over 30% percent annually lasted till 1995 - for almost 6 years!
http://www.tradingeconomics.com/poland/inflation-cpi
It may be deemed as no hyperinflation conditions, but economy in this state cannot develop in a usual, robust manner.
One may say that it was due to 50 years of communism, but the mechanism was the same as it is today - the money was printed whenever necessary and lost its value. This is the same as quantitative easing, so we can expect similar effect in US and EU, especially in euro zone. The only questions are: when? and how high?
Given that euro zone and EU tries to centralize decision making process, which is innate trait of communist government, everyone should be able to draw their own conclusions...

Originally posted by jimkane

Here's a quick article for those still debating hyperdeflation versus hyperinflation.

http://www.zerohedge.com/news/monetary-endgame-score-date-hyperinflations-56-hyperdeflations-0

Thanks for the valuable first-hand insight, Marcin. This current situation is totally unparalleled in history, in that it is worldwide this time, involves $1,600 trillion in derivatives (by the estimates I consider likely the most accurate, just under $800 trillion by consensus estimates), and has become an all or nothing struggle for survival of the entire system. Very, very few realize how grave the situation really is because of the immense propaganda.

I think, without an even close second, this is going to be the single most significant event in human history, far, far surpassing the invention of nuclear weapons, WWII, the printing press, genetically engineered smallpox, and so on. This is 'the big one'. I'm not joking, when it's all over I think billions will be dead, and 'mankind' will be close to back in the stone age. But, what do I know...

P.S. Why do I say all that? Other than the nature of the powerful to hang on and rule by any means, which I think will lead to totalitarian states, few realize how delicate our supply chains for food, water, energy, and medication really are. When they go, many will perish.

meanwhile....

Originally posted by MarcinO

I haven't thought that this post and link would require any commentary until I have read that the other post by Jim, directly related to this one had been voted down.
I believe everyone in this forum can imagine what hyperinflation means in the economy as a whole, but I know that US and Western Europe readers have never experienced it. Poland of 1989/90 happens to be on zero-hedge list with 77% monthly inflation rate. I can remember this period clearly as I was 10 years old then. I did know nothing about economy then but I still remember how I felt understanding that my parents and my classmates' families struggled to make ends meet. It was the gloomiest period of my life, as almost nobody could be sure of their future well being, trust me.
Moreover, take into account that this is not only one record month, as inflation rate of over 30% percent annually lasted till 1995 - for almost 6 years!
http://www.tradingeconomics.com/poland/inflation-cpi
It may be deemed as no hyperinflation conditions, but economy in this state cannot develop in a usual, robust manner.
One may say that it was due to 50 years of communism, but the mechanism was the same as it is today - the money was printed whenever necessary and lost its value. This is the same as quantitative easing, so we can expect similar effect in US and EU, especially in euro zone. The only questions are: when? and how high?
Given that euro zone and EU tries to centralize decision making process, which is innate trait of communist government, everyone should be able to draw their own conclusions...

Originally posted by jimkane

Here's a quick article for those still debating hyperdeflation versus hyperinflation.

http://www.zerohedge.com/news/monetary-endgame-score-date-hyperinflations-56-hyperdeflations-0

Thanks for good stuff .. but ...

Inflation requires rising interest rates. Until they keep it basically at zero US will have deflation. I know that this research shows inflation is much more common. But at this time because US is comming for whole wealth of their people inflation is out of question. It will happen but not in next few years. Who would spend or keep money when IRS is comming for every penny. They will rob their own people as they cannot see they are the problem. And Obama talking about 'fair share'? What a f... BS. Marx would be very very proud of this idiot. And he even said that those who have money 'did not make it alone'. And who made it? Obama??? Jesus ... Problem is Romney will not be any better. It is just an illusion of choice.

We probably should start new topic about idiots in US government (and most governments for the matter).

Good point Tomo, but remember that inflation can be also cost push when inputs prices go high. I am not an economist but think that this is the most likely inflation scenario. QE pumped money not to ordinary people but into markets driving commodities, inluding oil and food higher.

Nice reaction on EUR/USD so far.

complex abcd to the kz?

The reason why I haven't posted much lately is that I am completely fed up with the market action. Sure, there are still potential opportunities, but my style is trend trading and we haven't really trended for almost a month now. So, if one likes rangy days and small line to line stuff it's been great, but I live for trends. I suspect they could return soon. Tomorrow 'Dragh Queen' does his thing. Next week the German court ruling. And Bern-Qwacke. And lots of other stuff. See here: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/08-2/20120829_Calendar.png Click on the image to increase the size.

Anyway, if they disappoint (this seems highly unlikely unless they want O'Bummer out and plan a last minute drop of the markets into the election...) we get a big move, and if they really crank the printing presses, it heads for new highs and we get a big move. Unless, for some strange reason, it keeps this up regardless. I see that as quite unlikely. In the meantime I'm working on my patience and my 'scalping'.

So, I agree here with how effective 'Dragh Queen's' new 'plan' will be. Same old, same old.

http://www.zerohedge.com/contributed/2012-09-07/marios-shock-and-awe