Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

>>>I have a little scenario too.

All this extra liquidity puts pressure on commodities, and first of all oil. And on the dollar. In turn simultaneously choking the consumer, exporters (due to higher dollar vs other currencies), and domestic producers due to higher energy costs.
That in turn will renew fears of inflation and will force the Fed to continue hiking and long bonds to start selling. Increased interest rates will in turn hit the housing bubble, which will implode taking down the rest of the economy with it.

I think Extra liquidity from the Euro debalce is only accelerating the events, and not delaying them.<<<
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Hi ogm,
Though tending to agree with your scenario's conclusion, I disagree with how you arrived at it seeing as it was/is the massive amount of liquidity that drove the USD down leading to higher commodity prices, including, of course oil.

How do you see extra (more) liquidity now putting pressure on commodities when it was the very catalyst that helped them to skyrocket in the first place?

I'll leave your "Euro debacle" premise alone for now.