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Chart Of The Day thread


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  • 3 months later...

I was playing around with the Ngram feature on Google Books. It allows you to search for the use of a word or expression and plot how common its use was in publications. Searching on "gold standard" shows a peak around 1870-1905, which was a time when many countries followed the UK onto the gold standard (Germany in effect in 1871, and the USA in 1900). A second larger peak occurred in the 1930s, topping in 1933, which was the year of FDR's infamous Executive Order 6102 banning private ownership of gold in the USA. The dog that didn't bark was an absence of any response to Nixon ending the Bretton Woods agreement in 1971. Finally, a growing interest from the 1990s to the present.

 

ngram-gold-standard.thumb.png.1446933f5e756439b9a8af293607eb5a.png

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  • 3 weeks later...

Natural gas prices in Europe are anomalous. In North America they are a fraction of what we are paying in Europe. Also, the source does not say whether they are using spot price, futures price, or some commercial price. My guess is they are using the Henry Hub spot price. 

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  • 2 weeks later...
9 hours ago, Zhorro said:

It would be useful if you could just add a sentence or two explaining what this means.

Imagine you are in the market to buy some wheat. You can either buy spot wheat or futures. When you buy spot you expect delivery in a few days. When you buy futures you might expect delivery in a few months. Now the seller of the wheat futures might well have to store the wheat and that will cost. So you would expect to pay more.
Where futures of a commodity are more expensive than the spot, this is contango. This is normal.
When futures are cheaper than spot, this is called backwardation. This is an abnormal situation.

Backwardation might occur if a lot of people want whatever it is now - perhaps they don't trust they will get it in the future, maybe there is some other reason but the essence is buyers want it now.
In precious metals backwardation tends to occur b/c the COMEX got smashed with paper metal but when a situation happens across the board it means people want stuff today not at some point in the future. It implies people are getting nervous, there is an element of panic for real stuff.

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

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