Monday, December 15, 2014

Proof That ZIRP Leads to "Sure Thing" Hyperinflation

In unsustainable mining output! What did you think I meant? Dollars? Does this site look like ShadowStats to you? You can't be serious! I may be a permabear, but I'm not entirely crazy! Mwuhahaha!

The following chart shows the 12-month moving average of mining industrial output.

Click to enlarge.

Holy cow? What are we building ourselves? I sure hope it involves full scale copper replicas of the Great Pyramids! How cool would that be?

Note that before ZIRP, mining output was heading down, chaotic, and full of mystery.

No longer! We're permanently free of anything bad happening! This new exponential trend in red is as smooth and tender as a fine steak in an upscale restaurant! It will never fail to please! Tasty to the last delicious bite!

This Week on Mine Your Manners

If you have to ask how much a New York "stake" is going to cost you over the long run, then perhaps you can't afford it. For example, Silver Standard Resources lost another 15% today.

What Rich People Do: Finding your way around the steakhouse

You can ask for A1 in a high-class steakhouse, but it’s tantamount to saying “I hate America. And I’m in favor of incestuous gay marriage between Communists … at Disneyland.”

That's what I love about monetary policy! ZIRP isn't just a blunt tool. Its sauce makes a great surgical condiment! A1! Top notch! Targets only the mining industry! Any potential misallocation of capital only ends up there! That leaves the rest of our economy to thrive for all eternity!

In all seriousness, it is very difficult to solve deflationary debt and production overcapacity problems by borrowing extra money to increase production capacity. I know. More crazy talk.

See Also:
Poll: Is There a Sarcasm Bubble?
Parabolic Hyperinflation Theories Thwarted by Twisted Maize of Cornucopia Puns

Source Data:
St. Louis Fed: Industrial Production: Mining

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