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$200 Oil Coming As Central Banks Go CTRL+P HappyWe have been saying it for weeks, and today even the WSJ jumped on the bandwagon: the sole reason why crude prices are surging (RIP European profit margins: with EUR Brent at a record, we can only assume the ECB will pull a 2011 and hike rates in 3-4 months even as it pumps trillions in PIIGS, banks bailout liquidity) - is because global liquidity has risen by $2 trillion in a few short months, on the most epic shadow liquidity tsunami launched in history in lieu of QE3 (discussed extensively here in our words, but here are JPM's). Luckily, the market is finally waking up to this, and just as world central banks were preparing to offset deflation, they will instead have to deal with spiking inflation, because the market may have a short memory, it can remember what happened just about this time in 2011. And the problem is that when it comes to the inflation trade, the market, unlike in most other instances, can be fast - blazing fast, at anticipating what the central planning collective's next step will be, after all there is only one. And if Bank of America is correct, that next step could well lead to the same unprecedented economic catastrophe that we saw back in 2008, only worse: $200 oil. Note - this is completely independent of what happens in Iran, and is 100% dependent on what happens in the 3rd subbasement of the Marriner Eccles building. Throw in an Iran war and all bets are off. Needless to say, an epic deflationary shock will need to follow immediately, just as in 2008, which means that, in keeping with the tradition of being 6-9 months ahead of the market, our question today is - which bank will be 2012's sacrificial Lehman to set off the latest and greatest deflationary collapse and send crude plunging to $30 just after it hits $200.  ,  $10 Trillion In 2 years - 'Over' Abundant Liquidity And ExpectationsToday's Events: Consumer Confidence in Manipulated Markets, New Home Sales, Fed SpeechesBunch of irrelevant and reflexive (stock market is up so confidence - in what? manipulated markets? - is higher, so stock market is up so confidence is higher etc) stuff today, as the world central banks prepare to pump another $600-$1000 billion into the consolidated balance sheet and send input costs into the stratosphere. , 'Gold Bullion or Cash' Shows Buffett, Roubini, Krugman Mistaken; Faber, Rogers, Bass, Einhorn, Gross CorrectCurrency debasement of all major currencies is happening today on a scale never before seen in history. Yet there continues to be a complete lack of awareness amongst the majority in the western world as to the risks posed by our currency monetary and financial system. , SSDD - Same S...&P, Different DayThe last six months' market behavior is somewhat breath-takingly similar to the same period a year ago. With global central banks pumping (RoW replacing Fed for now), energy prices soaring… ,  Frontrunning: February 24U.S. Postal Service to Cut 35,000 Jobs as Plants Are Shut (BBG) -Expect one whopper of a seasonal adjustment to compensate  #2 European Banks May Tap ECB for $629 Billion Cash (Bloomberg) - EURUSD surging as all ECB easing now priced in; Fed is next #3 Madrid presses EU to ease deficit targets (FT) #4 Greek Parliament Approves Debt Write-Down (WSJ) #5 Mentor of Central Bankers Fischer Rues Complacency as Economy Accelerates (Bloomberg) #6 Draghi Takes Tough Line on Austerity (WSJ) #7 European Banks Hit by Losses (WSJ) #8 Moody's: won't take ratings action on Japan on Friday (Reuters) #9 Athens told to change spending and taxes (FT) , Europe's Cash-For-Trash LTRO-'Scam' And The Indentured Servitude Of The CitizenryIn a must-watch follow-up to his original Punk Economics Lesson, David McWilliams describes how the new bankocracy in Europe will lead to a massive injection of liquidity; blowing bubbles in financial assets while the citizenry is bled dry (ring any recent bells?). The banks again get all the money they need while the average citizen shoulders the burden.  , Guest Post: The Greek Tragedy And Great Depression Lessons Not LearnedGreece has been the most pillaged country in Europe this Depression, among other reasons, because no one in any leadership position seems to have learned lessons from the 1930s , Greece (and the PIIGS) Are a MAJOR Problem… Even for the Strongest German Banks  http://gainspainscapital.com February 24, 2012 By gpc1981 , Crude's Rally Shows $4 Gas On The Way The Wall Street Journal [ Actually higher … oh, riiiiight … the that’s bullish … Not! … Not even for the oils beyond the short-term! ] , TheStreet Harry S. Dent, author of The Great Crash Ahead, says investors should expect a stock selloff followed by further Fed action.02/24/12 03:30 - Gregg Greenberg  In The Great Crash Ahead, Dent forecasts that this economic collapse will become worldwide over the next few years. http://opinion.financialpost.com/2011/09/16/the-great-crash-ahead-harry-dent-now-predicts-dow-will-fall-to-as-low-as-3000 On the heels of his The Great Depression Ahead, Harry Dent, Jr. has just published The Great Crash Ahead. , Get Ready for the Retracement: Analyst  , Feeling That European Springtime Swoon Coming On Again  Forbes 2/24/2012 Sy Harding   Chart: ‘America’s Per Capita Government Debt Worse Than Greece’ Feb 23rd, (The Weekly Standard) — The office of Senator Jeff Sessions, ranking member on the Senate Budget Committee, sends along this chart, showing that ‘America’s Per Capita Government Debt Worse Than Greece,’ as well as Ireland, Italy, France, Portugal, and Spain: http://albertpeia.com/debtpercapita.jpg   , Gasoline Prices Are Not Rising, the Dollar Is Falling Louis Woodhill | Eventually, all prices equilibrate with gold.  , In Europe and America … No Retirement! Just Sufferin’ Daily Bell | This is historic stuff. The end of Dreamtime, folks. , Debt Doomsday May Come Sooner Than Expected Politico | The federal government could hit the debt ceiling sooner than expected — and possibly around the November election — according to a report out Friday.