Food prices

[T_Won]

Beck laid out a graph yesterday showing that oil prices (and commodity prices) rise in exact proportion to the decrease of the value of the dollar. He explained that oil is traded in dollars. If a barrel of oil costs $100, but $100 is only worth $97 "real dollars" due to QE, OPEC will raise the price of oil to $103 a barrel to make up the difference. They are going to get what the oil is worth, it's the dollar that is losing value.

Obama investigating oil companies for price gauging and people blaming it on speculators or global warming is a distraction.

[dawg80]

Beck laid out a graph yesterday showing that oil prices (and commodity prices) rise in exact proportion to the decrease of the value of the dollar. He explained that oil is traded in dollars. If a barrel of oil costs $100, but $100 is only worth $97 "real dollars" due to QE, OPEC will raise the price of oil to $103 a barrel to make up the difference. They are going to get what the oil is worth, it's the dollar that is losing value.

Obama investigating oil companies for price gauging and people blaming it on speculators or global warming is a distraction.

Devaluing the dollar? Well, obama and the dipchit demos did that quite well when they printed $2 trillion new dollars and threw them into the market. Well, they found their way into the market, the obamanites actually handed them out to leftist special interest groups, and poured the rest down a series of blackholes called: "shovel-ready projects" Y'all remember those? Of course the libtard media and the great, unwashed masses, who support the libs and can be readily identified daily...they are the ones who can't negotiate a 4-way stop...have all conveniently forgotten about 'em. Til the next time.

Most economists, plying their trade on the financial networks the past 48 hrs, contend that the two numbers: 1) $2 trillion printed and dumped by the obama Fed, and 2) $2 trillion the Chinese want to dump back into the market, to bring sanity to their currency portfolio, is just a coincidence.

Really? Ya think so? Just a coincidence?

[Guisslapp]

The big money doesn't think so
http://www.etftrends.com/2011/04/tra...ashort-silver/

The fundamentals for silver are still very good. It should still go up. It is such a small market, it is easy to manipulate by big players. If people ever start trying to close these paper transactions, there will not be enough physical silver to cover and then the price could go WAY WAY up.

[JuBru]

I've been looking around, but I don't see what the dollar is being devalued against right now. I understand the inflation stuff and such, but what in comparison is making the dollar so low supposedly? I ask since I have seen the dollar's value being within about 5cents or less of 6 other currencies (British Pound, Euro, Yen, AUD, Russian Ruble, and Swiss Franc). Maybe I'm missing what 'value' means here?

[T_Won]

Devaluing the dollar? Well, obama and the dipchit demos did that quite well when they printed $2 trillion new dollars and threw them into the market. Well, they found their way into the market, the obamanites actually handed them out to leftist special interest groups, and poured the rest down a series of blackholes called: "shovel-ready projects" Y'all remember those? Of course the libtard media and the great, unwashed masses, who support the libs and can be readily identified daily...they are the ones who can't negotiate a 4-way stop...have all conveniently forgotten about 'em. Til the next time.

Most economists, plying their trade on the financial networks the past 48 hrs, contend that the two numbers: 1) $2 trillion printed and dumped by the obama Fed, and 2) $2 trillion the Chinese want to dump back into the market, to bring sanity to their currency portfolio, is just a coincidence.

Really? Ya think so? Just a coincidence?

I'm not going to blame this on Obama. Sure, the stimulus package was dumb, but this is really about the mortgage crisis and the Fed bailing out the banks to avoid total collapse of the global economy. There are consequences of throwing more money into the system and the consequence is going to be huge inflation.... especially in food and oil prices. We need to be prepared, when QE3 happens, it's going to get nuts.

[T_Won]

I've been looking around, but I don't see what the dollar is being devalued against right now. I understand the inflation stuff and such, but what in comparison is making the dollar so low supposedly? I ask since I have seen the dollar's value being within about 5cents or less of 6 other currencies (British Pound, Euro, Yen, AUD, Russian Ruble, and Swiss Franc). Maybe I'm missing what 'value' means here?

Here's some good charts: (note the bottom chart that shows the comparison of the price of oil (red line) vs the value of the dollar (green line).

http://www.glennbeck.com/2011/04/25/...lining-dollar/

[Guisslapp]

I've been looking around, but I don't see what the dollar is being devalued against right now. I understand the inflation stuff and such, but what in comparison is making the dollar so low supposedly? I ask since I have seen the dollar's value being within about 5cents or less of 6 other currencies (British Pound, Euro, Yen, AUD, Russian Ruble, and Swiss Franc). Maybe I'm missing what 'value' means here?

The dollar is worth less when purchasing goods.

[saltydawg]

The dollar is worth less when purchasing goods.

I always thought of currency value as a function of supply and demand. Demand for US$ is low now because of our low interest rates, hence it trades less than other currencies which have higher interest rates.

[hoppinmad]

I always thought of currency value as a function of supply and demand. Demand for US$ is low now because of our low interest rates, hence it trades less than other currencies which have higher interest rates.

I was thinking libs value currency by who's picture is on the front ...it'll go up when obammer's pic is on there, isn't that right?

[Guisslapp]

More on inflation.
No inflation unless you eat, drink, drive or fly


http://money.cnn.com/2011/04/26/news...buzz/index.htm

[longdawgview]

I always thought of currency value as a function of supply and demand. Demand for US$ is low now because of our low interest rates, hence it trades less than other currencies which have higher interest rates.

You are correct, if Bernanke hints at raising rates tomorrow at the fed meeting, the dollar is going to rise, gold and silver will fall.

[longdawgview]

The fundamentals for silver are still very good. It should still go up. It is such a small market, it is easy to manipulate by big players. If people ever start trying to close these paper transactions, there will not be enough physical silver to cover and then the price could go WAY WAY up.

True, Silver does have actual real demand unlike gold but it is still use as a inflationary hedge. When the fed decides to raise interest rates, a pullback will happen especailly after this run-up.

[longdawgview]

Beck laid out a graph yesterday showing that oil prices (and commodity prices) rise in exact proportion to the decrease of the value of the dollar. He explained that oil is traded in dollars. If a barrel of oil costs $100, but $100 is only worth $97 "real dollars" due to QE, OPEC will raise the price of oil to $103 a barrel to make up the difference. They are going to get what the oil is worth, it's the dollar that is losing value.

Obama investigating oil companies for price gauging and people blaming it on speculators or global warming is a distraction.

Was the graph on his chalkboard?

[brtransplant]

You are correct, if Bernanke hints at raising rates tomorrow at the fed meeting, the dollar is going to rise, gold and silver will fall.

In the short term it may, but long term, the insane expansion of the US money supply will leave gold and silver no where to go but straight up. Those holding physical silver and gold will be the big winners. More gold and silver has been sold in ETF's than is even in existence. Once the owners of these precious metals ETF's realize that they can not take physical possession of the precious metals that they thought they owned, the price of physical gold and silver will skyrocket.

[longdawgview]

In the short term it may, but long term, the insane expansion of the US money supply will leave gold and silver no where to go but straight up. Those holding physical silver and gold will be the big winners. More gold and silver has been sold in ETF's than is even in existence. Once the owners of these precious metals ETF's realize that they can not take physical possession of the precious metals that they thought they owned, the price of physical gold and silver will skyrocket.

?
When you buy a etf like SLV you are bascially buying units of sliver future prices, you can't redeem and take delivery of actual sterling silver. When you sell you receive whatever the value of the unit in money. No one believes that if they own SLV they can redeem it for actual silver, if they do they don't need to be trading.