Fast Moving Incoming Recession . . . .

[jazz]

And why would the BOC raise interest rates?

The bank of canada like many central banks are printing money on one side of the ledger and lending it into the govt and banking system which strokes inflation if it doesnt go into productive assets. On the other hand they are buy MBS to keep rates low and provincial bonds because investors dont want our risky debt anymore and Canadians are broke.

Eventually that juggling act has to end. Canada does not have reserve currency nor are we under an economic union like the EU.

[errolanderson]

Big jobs miss released this morning . . . . U.S. job creation for August was a huge disappointment, with the economy adding just 235,000 positions, Economists surveyed by Dow Jones had been looking for 720,000 new hires. Somehow, U.S. unemployment shrank again.

Recession will hit hard this fall (IMO) . . . .

[biglentil]

Big jobs miss released this morning . . . . U.S. job creation for August was a huge disappointment, with the economy adding just 235,000 positions, Economists surveyed by Dow Jones had been looking for 720,000 new hires. Somehow, U.S. unemployment shrank again.

Recession will hit hard this fall (IMO) . . . .

Classic stagflation. Dollars gaining purchasing power is a pipe dream that money printers want you to believe. Stop drinking the koolaid it's bad for your financial well-being.

[errolanderson]

Stagflation until the stock market party is over . . . then serious deflation (IMO) which is already impacting the commodity world.

A tonne of firewood in Australia is now worth more than a tonne of iron ore . . . .

[rumrocks]

Of all the currencies which one will handle this recession the best.

[errolanderson]

Of all the currencies which one will handle this recession the best.

USD (IMO) . . . gold / silver in-trouble as deflation is not friendly to precious metals.

[biglentil]

USD (IMO) . . . gold / silver in-trouble as deflation is not friendly to precious metals.

Bill Gross the old bond king.Came out and said cash and treasuries are TRASH.That post the other day of the Saudi prince and Russian minister.Signing agreements on trade and military protection.Was the shot going off declaring the USD will be pushed aside going forward.Not maybe or might happen it is declared.As that was being signed Putin was in Nigeria signing similar agreements.Who is a major oil exporter for those that do not know.China also discovered major deposits of oil too to boot.The amount of USD and treasuries bought will drop significantly.That will make the dollar go down treasuries to drop and rates go up.Exactly what Gross is talking about.

The USD's role as reserve currency is quickly waning, there will be a tidel wave of USD looking for a home soon. Never before has the reserve currency experienced hyperinflation, it may very well take all fiat currency with it.

[errolanderson]

Just received a comment from Dae won Yoon South Korean analyst . . . "If this is stagflation, the stock market will crash. This is the biggest bad news".

And if the stock market crashes, inflation will be the least of our worries (IMO). Looks like markets are between a rock and a hard spot right now . . . .

[farming101]

Dow high on Aug 16 - 35,631.19. Suspecting it will stand. There now I said it, watch it go up some more. A 10% pullback certainly not out of the question.

[sumdumguy]

Short time? Maybe that’s why Trudeau called a snap election before the sh… hits the fan.

[biglentil]

USD (IMO) . . . gold / silver in-trouble as deflation is not friendly to precious metals.

Thanks Errol you are the contrarian indicator I needed to go all in. Just like how right when you called inflation dead it had a rip your face off rally. I've been calling for stagflation for over a year and what do we see...

[AlbertaFarmer5]

Errol, what are your thoughts on fertilizer prices going forward?
Well many other commodities seem to have peaked, fertilizer doesn't seem to have received the deflationary message yet. Can the fertilizers continue to chart their own path?

[errolanderson]

Errol, what are your thoughts on fertilizer prices going forward?
Well many other commodities seem to have peaked, fertilizer doesn't seem to have received the deflationary message yet. Can the fertilizers continue to chart their own path?

Sorry, no clue and out-of-my-wheelhouse . . . .

A general commodity pullback should have some price impact.

[WiltonRanch]

So Errol what does oats know?

[errolanderson]

So Errol what does oats know?

Very strong market. U.S. buyers will be short through winter and scrambling. Don’t see downside in this market likely through fall/early winter. 2CW bids $5.50/bu plus in Sk/Mb. Even light oats, very strong bids.