Reply to thread

Message

<blockquote data-quote="vstk" data-source="post: 1528287" data-attributes="member: 22329">I like charts too.I am prepared for deflation, it could happen if we have a crisis 2008-9 style that destroys demand before inflation gets out of control. I think it is a very real possibility.However, your palladium chart is a terrible argument for the deflationary case. It is a niche commodity mainly used in the auto industry, and its price has collapsed because of the supply issues with semi-conductors (chip shortage) and lower automobile production. In the end, this situation is inflationary.<img src="https://publish.manheim.com/content/dam/consulting/ManheimUsedVehicleValueIndex-LineGraph.png" alt="" class="fr-fic fr-dii fr-draggable " style="" /><img src="https://www.tradingview.com/x/aKuJ5uqe/" alt="" class="fr-fic fr-dii fr-draggable " style="" />Other much more significant commodities have been having a great run. Natural gas has been parabolic for example. Take a look at this chart of the price of natural gas in Europe, it has become insane:[MEDIA=twitter]1445343024523972608[/MEDIA]Energy prices everywhere have been going up up up with no major turnaround in sight (unless there is demand destruction). The US shale sector is crippled and is not reacting to the price increase like it used to.In the end, God only knows what's coming for us.</blockquote>

[QUOTE="vstk, post: 1528287, member: 22329"] I like charts too. I am prepared for deflation, it could happen if we have a crisis 2008-9 style that destroys demand before inflation gets out of control. I think it is a very real possibility. However, your palladium chart is a terrible argument for the deflationary case. It is a niche commodity mainly used in the auto industry, and its price has collapsed because of the supply issues with semi-conductors (chip shortage) and lower automobile production. In the end, this situation is inflationary. [IMG]https://publish.manheim.com/content/dam/consulting/ManheimUsedVehicleValueIndex-LineGraph.png[/IMG] [IMG]https://www.tradingview.com/x/aKuJ5uqe/[/IMG] Other much more significant commodities have been having a great run. Natural gas has been parabolic for example. Take a look at this chart of the price of natural gas in Europe, it has become insane: [MEDIA=twitter]1445343024523972608[/MEDIA] Energy prices everywhere have been going up up up with no major turnaround in sight (unless there is demand destruction). The US shale sector is crippled and is not reacting to the price increase like it used to. In the end, God only knows what's coming for us. [/QUOTE]

Verification