{"id":57597,"date":"2021-04-28T09:48:57","date_gmt":"2021-04-28T14:48:57","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57597"},"modified":"2021-04-28T09:48:57","modified_gmt":"2021-04-28T14:48:57","slug":"rabo-we-are-edging-closer-to-a-biblical-commodity-price-increase-scenario","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57597","title":{"rendered":"Rabo: We Are Edging Closer To A Biblical Commodity Price Increase Scenario"},"content":{"rendered":"
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Rabo: We Are Edging Closer To A Biblical Commodity Price Increase Scenario<\/a><\/h3>\n<\/header>\n
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We Need Some Serious Remodelling<\/strong><\/u><\/p>\n

Yesterday\u2019s Daily saw me float the model hypothesis that the Fed would like everyone to have all their money in stocks<\/strong>, so they would have a practical mechanism for inflating and deflating the economy above and beyond the need to mess around with interest rates or QE. Of course, this was a huge over-simplification. In particular, it overlooked housing:\u00a0why bother only inflating stocks when not everyone holds them, when you can do the same to housing, which everyone needs?<\/strong>\u00a0Lo and behold, yesterday\u2019s S&P\/CoreLogic 20-city prices were up 11.9% y\/y. (A figure the RBA will look at with smug contempt: \u201cThat\u2019s all you got?\u201d)<\/p>\n

Presumably the matching rise in US consumer confidence was driven more by stimulus checks in the mail than rent checks going out the door, or chats with realtors about affording a home in a country not exactly famous for its lack of available land. Yet surely the Fed is still missing a trick? Just switch to a digital currency, like China,\u00a0and assets can be turned on and off at will<\/strong>, and there is no need to go through with the pretense of inflating asset markets in lieu of the general economy.<\/p>\n

Yesterday\u2019s Daily was also a vowel-less attempt to emphasize what is missing from the macro-models the Fed uses to form the view it will share with the world later today – in-between pushing up stock and house prices:<\/p>\n

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  • Functioning banks and credit are not part of it<\/strong>. Professor Steve Keen\u2019s \u2018Minsky\u2019 software is unlikely used in the Eccles Building to spit out hockey-stick recoveries; or, if it is, the users really don\u2019t understand what it implies is going to happen next;<\/li>\n<\/ul>\n

    \u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Rabo: We Are Edging Closer To A Biblical Commodity Price Increase Scenario We Need Some Serious Remodelling Yesterday\u2019s Daily saw me float the model hypothesis that the Fed would like everyone to have all their money in stocks, so they would have a practical mechanism for inflating and deflating the economy above and beyond the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,151,426,24135,13351,24136,4318],"class_list":["post-57597","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-commodities","tag-inflation","tag-michael-every","tag-price-inflation","tag-rabobank","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=57597"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57597\/revisions"}],"predecessor-version":[{"id":57598,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57597\/revisions\/57598"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}