interesting read….

[Eugene]

My take (sorry for being repetitive)

* U.S. is not Zimbabwe
* “Schiff says it’s because the Fed is printing more money than Exxon Mobil” – not only BS but easily disprovable BS – just look at our monetary base. M2 and M3 reflect numerous other economic processes beyond the actual “printing”.
* In todays economic environment, allowing (monetary) inflation to get out of control would be suicidal (all housing problems we had so far, times ten).
* Gold is a bubble. All metals are bubbles. All grains are bubbles. Every commodity that can be cheaply stored for extended periods of time is a bubble. They are bubbles because people read too much Schiff and decide to put their money into commodity futures. (often indirectly via commodity ETFs)
* One exception is oil which may or may not be a bubble. (see “peak oil” theory)
* The only reason we see (price) inflation is because of appreciating oil and bubbles in various commodities.

[HereWeGo]

I concur 100% with esmith’s post.

[HereWeGo]

I concur 100% with esmith’s post.

[HereWeGo]

I concur 100% with esmith’s post.

[HereWeGo]

I concur 100% with esmith’s post.

[HereWeGo]

I concur 100% with esmith’s post.

[barnaby33]

hipmatt, the inflation has already occurred. Unless congress tries to “monetize” the bad debt, the deflation underway will continue.

If they do that, the govt cost of borrowing rises, and that is not something that congress will risk.

Josh

[barnaby33]

hipmatt, the inflation has already occurred. Unless congress tries to “monetize” the bad debt, the deflation underway will continue.

If they do that, the govt cost of borrowing rises, and that is not something that congress will risk.

Josh

[barnaby33]

hipmatt, the inflation has already occurred. Unless congress tries to “monetize” the bad debt, the deflation underway will continue.

If they do that, the govt cost of borrowing rises, and that is not something that congress will risk.

Josh

[barnaby33]

hipmatt, the inflation has already occurred. Unless congress tries to “monetize” the bad debt, the deflation underway will continue.

If they do that, the govt cost of borrowing rises, and that is not something that congress will risk.

Josh

[barnaby33]

hipmatt, the inflation has already occurred. Unless congress tries to “monetize” the bad debt, the deflation underway will continue.

If they do that, the govt cost of borrowing rises, and that is not something that congress will risk.

Josh

[patientrenter]

The great deflation vs inflation debate.

In a free-market economy, with the state we’re in today – way over-borrowed – deflation is the clear outcome.

But we absolutely do not live in a free-market economy. Inflation seems to be the easiest way for most homeowners (= most voters) to default (in terms of real value) on their mortgages whilst keeping their homes. I’ve concluded that whatever makes the vast majority of voters happiest is what ultimately happens.

Saying that we’ll have deflation and that the resulting crisis in the home mortgage markets will be resolved by a govt bail-out instead just begs the question of what’s next. A bail-out moves responsibility to the govt for repaying all the investors in mortgages. A lot of those investors are foreign. Repaying them will become burdensome, and that next problem will then be solved through…… you got it! Inflation.

Patient renter in OC

[patientrenter]

The great deflation vs inflation debate.

In a free-market economy, with the state we’re in today – way over-borrowed – deflation is the clear outcome.

But we absolutely do not live in a free-market economy. Inflation seems to be the easiest way for most homeowners (= most voters) to default (in terms of real value) on their mortgages whilst keeping their homes. I’ve concluded that whatever makes the vast majority of voters happiest is what ultimately happens.

Saying that we’ll have deflation and that the resulting crisis in the home mortgage markets will be resolved by a govt bail-out instead just begs the question of what’s next. A bail-out moves responsibility to the govt for repaying all the investors in mortgages. A lot of those investors are foreign. Repaying them will become burdensome, and that next problem will then be solved through…… you got it! Inflation.

Patient renter in OC

[patientrenter]

The great deflation vs inflation debate.

In a free-market economy, with the state we’re in today – way over-borrowed – deflation is the clear outcome.

But we absolutely do not live in a free-market economy. Inflation seems to be the easiest way for most homeowners (= most voters) to default (in terms of real value) on their mortgages whilst keeping their homes. I’ve concluded that whatever makes the vast majority of voters happiest is what ultimately happens.

Saying that we’ll have deflation and that the resulting crisis in the home mortgage markets will be resolved by a govt bail-out instead just begs the question of what’s next. A bail-out moves responsibility to the govt for repaying all the investors in mortgages. A lot of those investors are foreign. Repaying them will become burdensome, and that next problem will then be solved through…… you got it! Inflation.

Patient renter in OC

[patientrenter]

The great deflation vs inflation debate.

In a free-market economy, with the state we’re in today – way over-borrowed – deflation is the clear outcome.

But we absolutely do not live in a free-market economy. Inflation seems to be the easiest way for most homeowners (= most voters) to default (in terms of real value) on their mortgages whilst keeping their homes. I’ve concluded that whatever makes the vast majority of voters happiest is what ultimately happens.

Saying that we’ll have deflation and that the resulting crisis in the home mortgage markets will be resolved by a govt bail-out instead just begs the question of what’s next. A bail-out moves responsibility to the govt for repaying all the investors in mortgages. A lot of those investors are foreign. Repaying them will become burdensome, and that next problem will then be solved through…… you got it! Inflation.

Patient renter in OC

[Author]

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