kewp, what amounts to $500 billion? The total of writedowns, or the potential amount of tsunami flood back? I’m not sure what you mean, or where you are getting that figure from.
I disagree with your assessment that Peter Schiff had it backwards. Do you also think that Rich has it backwards? Both Rich Toscano (our host here) and Schiff are saying similar things. I read both of them because they back up my intuitions with hard data that I don’t feel like digging up myself. A lot of people, mostly fully discredited pundits on CNBC and the like, have been calling Peter Schiff “Dr. Doom” and dismissing what he has to say. He has a better track record to date than almost anyone. About the only people up there with him in terms of track record are Jim Rogers and George Soros, also saying dollar debasement will win. Incidentally, Soros has a few billion to his name to prove that he is almost always right.
Have you read Bernanke’s 2002 speech? It’s inspiring. He has the will, and the means, to cause severe inflation. Any indications of momentary deflation will likely only make him more aggressive, and that much more likely to overshoot and print too much. Most really smart people consider this the greatest threat we face.
