The problem with Mish is his Austrian bias. Same goes for many other deflation advocates. Whenever you hear someone saying “the Fed is a private business”, or using the word “malinvestment”, or demanding to “flush bad debt from the system”, or accusing the government of understating the CPI for its evil purposes, that’s a dead giveaway.
When it comes to interpreting (and predicting) actions of the Federal Reserve, not to mention their possible outcomes, Austrian bias is a big obstacle.
On Minyanville, half the articles talking about deflation are written by Mish.
Peter Schiff isn’t much better. His economics views are very shallow.
I don’t recall seeing any good articles discussing inflation vs. deflation with enough attention to details. Such as: the distinction between tradable and non-tradable goods and the realization that American economy is 80% services and non-tradables; interplay between exchange rates, trade deficits, long-term interest rates, money supply, and Bretton Woods II; Phillips curve (unemployment vs. inflation); whether inflation = money supply = CPI, if not, why; monetary and fiscal tools available to the government beyond simple rate-fixing.
inflation is the ONLY way we can pay our debt commitments, most notably social security and medicare
Social security and medicare are indexed to inflation.
