Commodities Sell-Off Today - Thoughts?

Bad economic news.

Number of first time filers for unemployment benefits way higher than expected.

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Commodities Sell-Off Today - Thoughts?
I think there is a commodity sell off today. In fact, I'm pretty sure of it.....

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You are such a baaaaaaaaad boy.

It really started last week. Liquidation Money has been going into T Bills.Pressure has been mounting from the rest of the world about the dollar and inflation. There is an article in the UK Telegraph today that shows the correlation graph between Food and the Fed buying Treasuries; same with Commodities. The article attempts to connect the dots between the FEDS actions and the start of the "Arab Spring".

This was coming to a head and you can bet your next pay check that the big money people were already out. See CNBC.com article about Carlos Slim and silver options.

Margin at highs and margin increases set it in motion.

Today, Trichet threw a shot across the bow to Geithner and Bernanke. It was a verbal "you go first on interest rates". Is it a trend or a pause?

Oil down over $8 today so far. Maybe my gas will be cheaper for my trip to Austin.

Look at the IRX 13 week T Bills. Money has been coming out of assets and into the IRX.

Worldwide pressure has been mounting on the FED about rising inflation and especially food. I know that ya'll think that the conversation belongs on the POL board, but we live in a Macro world and price pressure in life's necessities will create political and social problems. This move in commodities just could not last.

There are too many charts out there that show the correlation with the start of the FED treasury buying. In fact as the Telegraph article points out, one can time it to Bernanke's Jackson Hole Speech. You won't agree with the article but here it is:

Telegraph

Thus, does the FED defy the world and still keep buying treasuries above the reinvestment? OR are they possibly on hold? Are investors pulling back and waiting to see the next move?

OR are we in the first stages of financial chicken. Are the big boys going to stand down Congress and the FED like they did in the fall of 08? These are question I am asking myself.

One of the things I enjoy watching are the POMOS

today pomo

NOW, pull up an hourly DJIA chart at 11:00 eastern. I've been watching that a long time



I'm not trying to advance a social or political position. I realized a very long time ago that the markets are not a level playing field and you got to protect yourself.

The fed really can't increase rates. Since they have been pumping so much money into the system and driving the price of the $ lower, the inflation that is being created is not coming from internal pressures. It's cheaper for foreign countries to buy our commodities that it does to product their own. Kinda false inflation.

If they try to increase rates, they will absolutely kill any sputtering that the housing market in this country and therefore the rest of the economy.

They really are in between a rock and a hard place.

I think part of the reason Geithner and the fed are keeping rates so low is so that other countries will continue to buy our treasuries and goods. Maybe it's just the conspiricy theorist in me.

I also think that alot of the rise in commodity prices is from so many speculators playing in those markets now. Today with oil now at 98.74 (down 10.46 ) is a perfect example.

Please god make it stop. I think I'm going incognito for awhile.

I heard Soros cashed in some chips yesterday....

Alright genius, please expand with your all knowing knowledge of how the world economy works.

Please entertain me

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I think part of the reason Geithner and the fed are keeping rates so low is so that other countries will continue to buy our treasuries

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So your theory is lower interest rates on a security increases the demand for that security? You're gonna' have to 'splain that one to me......