Inflation and the function of Centralbanks!!!

It is NOT that, what the Centralbanks and Politicans are telling us since ages.
They are not trying to stop inflation! The U.S. dollar Gold standard was abandoned in 1971!

Remember the 100Y Mexican bond?

FYI A perfect contrary indication, eh?! The bond was issued in October 2010... Let's wait for the US to come with a 100Y one...

Time for a halt in commodities?

Attached I've the chart where you can see the ratio of the CCI Index divided by US average hourly earnings private nonfarm payrolls services sa. As you can see the ratio is near its top from June2008 before the cruel sell off. With all the food shortage mumble going around it should be nice to keep this chart in mind...As always when the hype is at its peak markets have the tendency to be ironic...

Even the lean hogs mistrust Ben's deflation bias...

Orphanides says raw material prices no immediate ...

inflation risk.................Here is the chart for this argument!!

And now look, how artificially low yields are...

Inflation

The Chart shows the Ratio between CRB/Dow Jones and Gold/Dow Jones. As you can see, the Dow outperformed all Commodities over the last 20 years in USD terms. Since 2002 Commodities outpaced paper profits (aka inflated Dow Jones) in real puchasing power terms.. If the asset allocation shift out of paper assets into hard assets starts food prices will be the tail rsik and bottel neck for all of us!