A Hyper-Inflationary Great Depression is Coming
Sunday, May 2, 2010Here’s an excellent interview with John Williams – from ShadowStats – on the International Business Times, via the Gold Report. There are many excellent comments in the piece, including this one:
You are getting happy news from governments, central banks, financial markets, Wall Street analysts and the popular media, which does tend to cater to Wall Street. Such is standard practice. Happy news is what sells and you don’t want to discourage people. The Obama administration, interestingly, started talking-down the economy when it wanted to get its stimulus package in place. As soon as that was done, it started talking-up the economy. Everything was just fine and dandy again. This is the most extraordinary downturn most people living today have ever seen. In terms of modern economic reporting, which basically started after World War II, we’ve never had a downturn as long or as severe.
Williams also discusses government accounting, and the truth that lurks beneath the false front:
Back in the ’70s, the then Big 10 accounting firms got together and approached the government and said, “Hey guys, you know you need to keep your books the way a big corporation does. You’re the largest financial operator on earth.” The government then, as well as today, operates on a cash basis with no accrual accounting and such. Yet, over a period of 30 years, the accountants and government put together generally accepted accounting principles, or GAAP, accounting for the federal government and introduced formal financial statements on that basis in 2002, which supplement the annual cash-based accounting.
If you look at those GAAP-based statements and include in the deficit the year-to-year change in the net present value of the unfunded liabilities for Social Security and Medicare, what you’ll find is that the annual operating shortfall is running between $4 and $5 trillion; not $500 billion as we saw before the crisis or the $1.4 trillion that they announced for fiscal 2009. Now to put that into perspective, if the government wanted to balance its deficit on a GAAP basis for a year, and it seized all personal income and corporate profits, taxing everything 100%, it would still be in deficit. It can’t raise taxes enough to contain this. On the other side, if it cut all government spending except for Social Security and Medicare, it still would be in deficit. With no political will to contain the spending, eventually the government meets its obligations by revving up the currency printing press.
Iluvatar says:
May 3rd, 2010 at 12:56 am
I am going to drop the bomb on this one tomorrow. Trust me on this one – it’s going to be a BOMB.
And I ain’t gonna be takin’ no prisoners on this one either. Straight, phi slamma jamma dunk MF.
Stay tuned…
Michael says:
May 3rd, 2010 at 9:49 am
Great interview. Williams’ statements about the federal accounting chicanery are pretty eye-opening.
I believe it was Gerald Celente who said there’s only one thing that can save us from an inflationary depression now and it has to something on the order of the invention of the wheel, human harnessing of fire, the debut of the automobile or the internet coming to market. Maybe teleportation?
Who knows. I’m putting my chips on Williams, Rogers and Schiff.
Brad Bolz says:
May 3rd, 2010 at 9:28 pm
And until we reach hyper-inflation, we’re 1st having deflation of everything we store wealth in….land, housing, US Dollars and etc.. After we see farmland prices implode and large multi-national corporations come in to buy said farmland…that’s when we know the depression has bottomed and I suspect that’s also when we’ll soon see the hyper-inflation portion begin in earnest.
Right now, we have inflation in things we consume and deflation in things we store wealth in….except of course for precious metals which have reflected the decrease in the dollars purchasing power. Very few people of course, have precious metals so the statement stands. Deflation in things we store wealth in and inflation in consumables.
It’s a nice game the powers that be are playing, perhaps it will get out of control and destroy them also.
Iluvatar says:
May 3rd, 2010 at 11:41 pm
OK
I promised that the bomb was going to drop.
This depression exceeds the depth of the most serious depression that we EVER faced in 1920 (NOT 1929). Warren G Harding set land speed records and got the economy on track by doing a very NON-Keynesian thing and whacked the cost of government by > +30%!!! Dude did it in 18 months FLAT. Di Lorenzo’s wiki entry on him was frickin’ heroic.
The games that the Fed/Fannie Mae/Greenspan/Wall Street (do not forget; the then-head of the CFTC wanted to regulate MBSs/CDOs/CDSs back in the Clinton administration & was shot down by Greenspan, the then-head of the SEC, and the then-head of Treasury – she QUIT after that).
That was the housing “bubble” (after the dot.com bubble). Wow! Way cool fellas – great MF job!
Now we have the greatest mother of all bubbles of all time – the Big GOV (AKA Big Gummint) bubble. Ya know? ABCT tells us that this shit always happens!!! (Wish I understood it – I am just a tyro).
And it ain’t only us; it’s PIIGS (Greece, Ireland, Italy, Portugal, and the WAY TO BIG TOO FAIL – Spain).
Indeed, the $146B bail-out of Greece has now made it impossible for them to do anymore bail-outs for anyone else in the Euro(Twilight)Zone. Why? THEY ARE OUT OF MONEY! (That is the stated proposition).
But hey, it ONLY gets BETTER!!
Did you notice that Greece’s 2YR bond SOARED/ROARED to 18% (they can’t write enough digits for the basis point increase; honestly could YOU make this shiite UP?). S&P & Moody downgraded their future debt offerings to JUNK status. That means NO ONE wants to buy your SHIT! Claro; est-ce que vous comprenez? The world is telling you to : “Va’te faire enculer!!!” (that is where you raise your right arm and bring your fist to vertical and then grab your bicep – oooooohhhhh I think we get that…)
What that means in even more simpler terms is that this country got into so much trouble that they could NOT AFFORD a debt offering, b/c they had no way of paying it BACK!
And guess who else is in line? Italy, Ireland, Portugal, and the big-boy who is going to bring the Euro/Twilight/Zone to its knees – Spain.
And as a part of the package deal, Greece has agreed to take austerity measures that have their unions in REVOLT (they have a choke-chain grip on the lifeline of their own country w/ the sole intention of just killing them).
– BUT WAIT A SEC! That would be California and the SEIU; right? RIGHT???? Los Angeles goes broke on 05 May – Cinco de Mayo – hey shoot some guns off into the air you fuck-shits OK? Really, have a great celebration – knock yourselves the fuck out OK?). Do a Darwin thingy awight (cap in Yo ass speak)?!?!?!
And now for some even better news:”Back in the ’70s, the then Big 10 accounting firms got together and approached the government and said, “Hey guys, you know you need to keep your books the way a big corporation does. You’re the largest financial operator on earth.” The government then, as well as today, operates on a cash basis with no accrual accounting”
OK, so some of that happened.
But here is where things really get artful (such a nice politically correct word; so kind and friendly too!). Called off-balance sheet accounting.
Karen, you are the EXPERT here!!
You know this stuff like you know the back of your hand!!!!!!!!!!! I am just a poor old electrical engineer/applied mathematician.
DUDE! I don’t do my budgets that way!!!!!!! (My “off-balance” accounts are carried through on-balance as future inputs/assets – like the damn garage door opener that died in January when I was supposed to replace it in June – it is a future refund (in JUNE!!).
And now, for some real entertainment: the accounting rules board made a really, really, really, really, QUIET move back in 2008 (date unclear), where they approved the DISMISSAL of the “Mark to Market” accounting rules for guess WHO: Big Bank!
That’s who – a great way to improve your balance sheet (IF it was on your balance sheet to begin with!!). I think they are called the FASB (Fed Accounting Standards Board).
But here is the killer!
If Big Bank was to be asked to RETURN to FASB “Mark to Market” rules RIGHT NOW – their balance sheets would show that they are flat frickin’ BUSTED – BROKE!
That is why “Helicopter Ben” Bernanke ain’t going there – that frickin’ shyster! They are trying to get there slower so that there aren’t major runs on the Big Boys despite the fact that the FDIC has already closed 57 banks this year (& they are setting land-speed records in their own right)!
And to top it off; really – TOP it off; our unfounded liabilities have been measured by some @ $66T!!!!!!! Man, you can’t even conceptualize this!!! That would be Social Security, Medicare, Medicaid.
Our GDP is somewhere in the $15T region. The worst part of that (and truly, this is where I REALLY stick my finger down my throat) is the fact that 70% of it is from CONSUMER SPENDING. DUDE! Get off that god-damned cell! Stop programming your HBO on your DVR off your cell phone and get a REAL life! WTF over?
Are you a frickin’ coastal Californian or WHAT????? (“We have a lifeSTYLE -NOT- a life”)
And so here comes the really good news. Folks who are WAY SMARTER THAN ME == just about everyone (remember?; I told y’all I was just a simple man who (just) wanted to be free?????), have said it over and over again. They are: Gary North, Lew Rockwell (hey! he actually replied to my e-mail – another post), Ron Paul, Mogambo Guru (R Daughty), Di Lorenzo, T Woods, et. al.
Our country is headed for a super-inflationary period of duration ~<5years. It is b/c we spend money we DON'T have and will occur when our debt can NOT be serviced by OFFERING NEW DEBT. B/c THERE AIN"T NO FOOL OUT THERE WHO WANTS TO BUY IT , DUH!!!
And that is when the bomb hits. That's when Wall Street's famous line:" a rolling debt gathers NO moss": FAILS!!!
And trust me on this one? It is going to hit HARD.
No one survives.
Better do something better than "duck & cover".
We're talking a little bit more than a "burst seam" in the fabric of our society here. It'll be the most strategic shift that ever shook your "booty".
This is why we have such a telling need for leadership that is about the reduction of the cost of our Big Gummint (as you assholes keep referring to us as). It is about reducing ALL forms of government and the stripping of their power b/c they have taken it, in Rothbard's words: "to its logical conclusion".
It is about reducing BG by about 90% in scope and about 80-87% in its funded cost. It should not be too difficult; about 90% of BG is UNCONSTITUTIONAL to begin.
I surpise myself with the fact that I no longer have a logical dilemma with the words: "illegal law". That's the bulk of we got here fellas!!!
But more than anything, what motivates me most is being a Jesus-based panentheist. I wouldn't bother w/ this effort, if I did not also care for my brothers. (What a different concept of reality when you can view ALL humans as your "brother" – slightly different take, huh?)
Please, make all absolute haste to protect yourselves as you so see fit.
Hey, I can cut jokes w/ you; it's all good fun. But I am finding that the only role of humor NOW is a protection from pitching off the knife blade we are all perched upon and not falling into the maw of the abyss (who has now started to stare BACK at us) which is the insanity of our "reality"…
PS I am copying and pasting this into a MSWord Doc b/c I felt that I have been "banned" from your blog & I don't want to re-type this (ever again).
That post on that stoopid work-out machine was WAY over the top. It was so damn funny; but I aplogize for it anyway.
Bye.
Bob Roddis says:
May 4th, 2010 at 12:20 am
I blame the media for its overall relentless suppression of any type of economic truthtelling. PBS recently showed an “economics” program, funded in part by David Koch, and dedicated to blaming free market fundametalism for the recent crash. It’s called Mind Over Money. It’s a hit piece on the free market based upon having Robert Schiller mock the Chicago School and rational markets theory. It’s truly horrible. Not a single mention of the FED. Simply amazing.
The omission of any mention of the Austrian school on this program was intentional. It is a knowing material omission. In other words, fraud. Note that funding for the show was provided by David H. Koch. Mr. Koch knows very well who Murray Rothbard and the Austrian school are. Check out this CATO ad from the back of one my 1980 issues of Reason magazine. David Gordon explains Mr. Kock’s self-interested hostility to Mr. Rothbard and the Austrian School here.
PBS should be ashamed to put on a program like this based upon such a complete and knowing fraud. All of its stations should lose their broadcast licenses.
Iluvatar says:
May 4th, 2010 at 3:28 pm
@ Bob Roddis: I just started reading Reason. Here is a good piece:
http://reason.com/archives/2010/05/03/how-starving-government-still
Steve Chapman wrote it.
But lately, I have been enjoying David Harsanyi, especially, his pieces on the immigration law just passed in AZ. But, that is off topic. You can get to it from the link above.
Also like the Pragmatic Capitalist too.
The destruction of our economy (by the systematic distortions on the value of the fiat currency and interest rates) might be blamed solely on the Fed and the Cartel of Big Bank created in 1913 by “Woodie” (Woodpecker) Wilson and the Morgan family.
They must have known they were up to no good. They passed the bill on Christmas Eve (or something like that).
Sound like an attempt to avoid scrutiny or what?
Hey Stonewall Jackson may have not made many friends?, but he DID shut down the bank.
But hey, our fiscal policies, socialisms, and entitlements have certainly taken their toll too?
And oh, BTW? Big Bank is NOT a capitalism/free market. I hate the argument that unbridled capitalism was the cause of our ills.
A sad sign of the times?
I tried to think up of a situation wherein the number of suppliers and the number of demanders were approaching infinity? I mean something that wasn’t a monopoly/oligopoly or monopsony/oligopsony?
First thing I came up with was fast food chains! Oh dear lord…
Iluvatar says:
May 4th, 2010 at 4:52 pm
Sorry for the lack of references in the post 2-back. Most of this research is in a folder here at work:
This piece and the ones that follow were very interesting. Oh, yeh, the CFTC head was Brooksley Born.
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/14/AR2008101403343.html
She didn’t get to stay long. But I heard that they had ice cream at her going-away party!
Iluvatar says:
May 4th, 2010 at 5:06 pm
And here is some resources on PIIGS:
http://pragcap.com/is-the-real-contagion-now-beginning
I’m not sure I have my arms all of the way around the argument, but I heard Greece should just un-hook from the Euro and then immediately debase their (new, fiat) currency.
It is the standard trick to ease your debt burden.
I’ll just pay you off in cheaper dollars!
(Did I just say dollars!? I meant to say drachma. Or mebbe this was a Freudian slip…)
Iluvatar says:
May 4th, 2010 at 5:26 pm
And here is the FASB “mark to market” change. Not 2008, 2009 (sorry!):
http://www.reuters.com/article/idUSN0235590020090402
Hmmmmm….
Michael says:
May 4th, 2010 at 9:40 pm
I see the “lion of long-windedness” made good on his promise. ;)
clark says:
May 5th, 2010 at 12:25 am
I posted a link to this blog entry on a preppers website and had a deflationist say this in response:
@anon re: Karen DeCoster.
DeCoster appears to confuse “revving up the printing presses” with floating more gov’t debt. They are NOT synonymous.
Since 1913 (when the Fed was created) the dollar has lost 95% of its purchasing power. That’s inflation.
Today we have an ocean of IOUs that people THINK is wealth. Those IOUs include gov’t debt, but it’s of value only so long as people trust it will be honored (it won’t be). Those who expect hyperinflation have yet to point to a SINGLE instance in history when hyperinflation was effected via credit creation (which is what we continue to experience). It has NEVER happened. All hyperinflations are currency (printing) phenomena.
I can’t ask this enough: How do you think anyone can PRINT enough cash to hyperinflate the U.S. economy as it stands? There aren’t enough trees to turn into paper. Until you can show me a $1,000 bill (much less a $100,000 bill…I think Obama’s image will grace it), there is no chance for hyperinflation….
http://ferfal.blogspot.com/2010/05/buying-home-before-or-after-inflation.html
Iluvatar says:
May 5th, 2010 at 1:02 am
@ Michael:
Whew!! (a really long blow here)!! It sure was wasn’t it? I just hope that I didn’t just tick off everyone on this damn planet. Just so everyone knows: it was NOT my intention to do so – please accept my apologies in advance IF I DID.
I’m sleepy…
I have so much fire on the belly on the state of our nation – & despite my griping? I’d rather live here than somewhere ELSE (ok another state but that’s no big deal – right????)
Iluvatar says:
May 5th, 2010 at 3:30 am
Hey, what does ;) translate to? \/ or ^
never mind…
Karen De Coster says:
May 5th, 2010 at 5:03 am
Clark – #1, this guy is posting simplistic trash on a comments section of a blog. Thus, meaningless. The problem can’t be described in one sound bite. It’s all been explained elsewhere – over and over again. And they link to Prechter, too, so you can see where he is coming from. #2 – when will people who are online understand the difference between something I said and something I quoted from an article? The huge quotation marks around the comments I quote are a *tiny* hint, no? So no, they are regurgitating crap, and, I didn’t “confuse” anything …
clark says:
May 5th, 2010 at 1:39 pm
“…when will people who are online understand the difference between something I said and something I quoted from an article? ”
Never. I’ve recently been having the same experience, when they do that does it equal to when a person pounds on a podium when they’re giving a speech, because they’ve got nothing? Sometimes I think it’s because they have an emotion clouding their vision, or it’s on purpose? I try not to think it’s because they are stupid.
“It’s all been explained elsewhere – over and over again.”
But that doesn’t stop people from trying to sort it out yet one more time. That’s what some people are trying to do at the GTA forum, decide between inflation or deflation, and when the deflationist mix into the conversation it gets confusing making it all the harder for some to decide what direction we are headed into the future – so they can prepare. How can a person prepare unless they know what to prepare for? It seems preparing for a deflationary economic crisis should require different preparations than for an inflationary economic crisis.
Ferfal’s going on 10 years now of inflation surges and high crime rates, that’s a long haul to prepare for, and I think most people only prepare to ride out an extreme snowstorm or hurricane type storm and that’s it.
Iluvatar, great rant, I know there are many people who wish you could say that to their spouse/parents/adult-children/neighbors/friends etc… For me it was a bit too illustrative, but that part speaks to some people, the ones who need to hear it, but they probably won’t listen.
It was better than reading a Bloomberg article, that’s for sure.
Iluvatar says:
May 5th, 2010 at 8:44 pm
@ clark:
Just a couple of points and then I will STFU (I heard you Michael and your point was agreed to by me – you’re a class act – I, however, am not…)
1) I find it unlikely that we will entertain a deflationary period (which is what, I think IMHO, we should EXACTLY have) by virtue of the intervention of the Fed’s monetary policy and interest rate manipulations.
But that is not such a bad situation as goods & prices come down (along w/ asset classes – like your home, and wages & wage costs: which was disallowed in the depression of 1929).
2) That said, we entertain 3 scenarios: a) moderate inflation 1-5%, b) non-moderate inflation: 5-20% (like the `70s), c) high inflation 20%-100%, & d) hyperinflation > 100%.
3) All the ABCT experts (esp’ly Gary North) indicate that the Probabilites of events b)-d) have never been HIGHER – depending on our success at servicing our ever-increasing debt burdens (does the Fed monetize it by printing more money out of thin air (that is a hyperinflative scenario)? -or- does someone else buy it while we are paying our debt down whilst having a money supply that is 3-4x higher than it was, coupled (and this is very important) w/ a “velocity of money” that is non-zero (so the money supply actually gets to the general public rather than sitting in Big Bank `cause then it would be BROKE otherwise)?
And this is where I end being confused. I don’t know how it will play – I just don’t want to see >20% inflation – the erosion of wealth is severe.
Darn it! I wish I understood Gary North (and Rothbard) better? This is going to take some time…
I apologize for the content of that “rant”. WAY too much cussing.
Also, the poor literary style. To write a good essay, I bang it out in 3-4 days, then mull over it for another 2-3 and shape it up, then push it in for final “polish” – I write very SLO. I did this in 1 night. It is a POS. I am surprised there aren’t a whole lot more well-meaning folks objecting to the poor presentation – having fire on the belly lets you get away w/ it? (doubt it…)
Shannon says:
May 6th, 2010 at 7:23 pm
Now, now! The recession is over, after all that isn’t that what the “experts” are saying? A depression? Of course not! 11 trillion dollars in debt, 8 million jobs gone for good. A depression is just the beginning!
Michael says:
May 6th, 2010 at 9:50 pm
My chips are on the FED monetizing it too. But we’re seeing deflationary forces at work because loans are going belly up. Remember, if the loan is nonperforming, there’s no debt. The money vanishes in a fractional reserve system like ours.
BTW, there are a few ABCT experts subscribe the the *deflationary* theory: See Mish Shedlock, Steve Keen, etc.
Iluvatar says:
May 7th, 2010 at 12:51 am
Well, quite a day!:
Greece blew up for a 2nd day and the stock market did a “FALSE” plunge b/c of a screw-up in P&G’s trading system ($10 bucks – their SERVER WENT DOWN).
Violence (in Greece) was ~severe and may tame down.
But what will not tame down (at least for a little while), is Greece’s problems (which! Darn it, is ours too! We’re just lagging these guys by ~18-48 months – SHIITE!).
And then, Gold just SOARED thorugh the $1200/oz mark TODAY (it went down for 30 minutes then just blew right throught the freakin’ barrier (despite the Fed’s implementation of their barrier squadrons to manipulate the price of Gold – long story).
The poblems of Greece ( and Spain to follow in ~ 2months? DUH!!) are isillustrative of when you can no longer OFFER debt b/c the market has deemed you to be IN THE TOILET!
And when that happens, and YOU == the Treasury determine that it can not pay off on either the principal/interest of the debt you ALREADY offerred & PLAN TO OFFER; so THE FED buys it (and that fellas, is what we call “monetizing the debt”).
And that day is already HERE/or coming right around the corner. The Fed has already done this on mulitple occasions and is trying to “Un-wind” themselves from their position (you can rad the FOMC’s minutes right from their OWN WEBSITE! – way cool).
But that takes time as they, themselves, are holding onto so much toxic debt (that they took from “Big Bank”)
So, we are still a bit a ways away where; the Fed’s monetization of the debt IN CONJUNCTION with a non-zero “Velocity of Money” (which causes “price” inflation) leads to a high-inflationary scenario despite the fact that private enterprise is showing ~NO GROWTH (it can’t because Big Gov is squashing them like flies).
That’s my thought.
And I would REALLY like ALL the experts to refute this!
And I am begging that you do so for the benefit of us – We need your help!
If what I just proposed was “BONKED”; that’s fine! Give us the rationale for why it so?
Trust me on this one? I don’t mind being humble & don’t have any problem w/ being bonked – but our population should KNOW- yes??
Bishop to Rook-4 — YOUR MOVE!!!
ALL Clarke asked was a simple question: HOW DO WE PREPARE for this oncomng disaster!
ALL I WANT TO HEAR IS A GOD-DAMNED ANSWER@!
We just want to prepare, OK?
There is nothing WRONG w/ the askance – KAY!!!!!!
These are the resources that we need; TO PREPARE.
Pretty frickin’ simple; OH did I forget; I am just being simple?
But that’s who I AM – just a simple man…
Iluvatar says:
May 7th, 2010 at 1:05 am
OKAY
I just lost count of the # of typos in that last message; I apologize. Oh! But you already knew tha t I couldn’t ype@! No surprises there… (DUH!)
Hey that’s CHARACTER FLAW # 20; CHARACTER FLAW #3 is:
I almost ALWAYS make the mistake that I am quick-witted. When, in truth, I am NEITHER.
I am NOT allowed (yet) to tell you CHARACTER FLAW #1 (wink!).
-Sorry!-
But HERE is a quick wit: Samuel Clemens (AKA Mark Twain): “Golf is a good walk – RUINED”
Dude was terse, n’est-ce pas? 6 words and only 1 of them was polysyllabic. You can’t beat this guy///
Iluvatar says:
May 7th, 2010 at 3:01 am
After the very kind, but inevitably disappointing response from Lew Rockwell in my e-mail to him (hey! I did NOT get killed for that, Whew!~ -or- anything – way very cool!!!!), it still left w/ me a sad disposition:
Being a libertarian (which I am not sure I AM??) is NOT a club membership deal (like the Transcendentalists before us – uh, Duh, Thoreau on Walden’s Pond).
And from Lew’s words: “Dude I don’t dance in a pond of swill (or something really, really, really close to that (NOT!!!) – and that would be ANY participation in a political exercise- SUPER Frickin’ Yucko!! Dude – are U stoopid!!??!!”
(I am just paraphrasing here; were you able to tell??)
And (Dante’s) hell? where does that leave me (when I am not am a libertarian to begin with)??
(oK – so I am an existentialist, a panentheist, a transcendentalist, and a comparitive studier of religion as a philosopher (Vindantu Hinduism), and and I am getting to Buddha – despite my love for “Zen & the Art of Motorcycling”, but my heart still lies with Jesus/Kant/Nietzsche/Kafka/Watts; and all of those really cool fellas who are revolting against the system – like Colin Wilson, Betrand Russel, et al)??
Where does that leave me?
OR -more importantly- WHERE DOES THAT LEAVE US?
Folks like us don’t WANT to be associated w/ groups – it makes our skin CRAWL (at least it does me; and maybe that is the litmus test – does it do the same for you????).
But guess what folks?
Politics is a CLUB-ONLY GAME- Duh!!!
That means we are TOAST.
I’d like to write an essay (that DUH was actually ~well written on this subject) that addresses this obvious dilemma.
Maybe, it will help in the upcoming elections???????
(Mebbe not….)
My next foray – might even qualify as a thesis defense…><
Stay tuned….
But clearly, getting organized for these upcoming elelctions IS important. And getting OUR candidates in line is important too.
I am going to end this w/ a joke:
I am voting for M. Terry for PRESIDENT!!!!!!! For the simple reason that this dude will not be a comedian (you only had 2 choices after all!!). And you have not given a reason EITHER WAY. Gothcha! (heh heh heh heh)
Iluvatar says:
May 11th, 2010 at 2:36 pm
@ Michael:
Found Mish (now I know why it looked familiar)
http://globaleconomicanalysis.blogspot.com/2010/05/shock-and-awe-part-ii-show-of-force.html
I am searching for some stuff by him that supports the deflationary line of thinking. Could you flip me a link when yuo get a moment? Thanks in advance for your time.
See what is happening in the Euro(Twilight)Zone lately? Now we’re up to $1T and the Fed has re-opened the currency swap window, too!
I’m getting very scared.
Iluvatar says:
May 11th, 2010 at 5:30 pm
@ Michael & Clarke:
here is an interesting link that supports the deflationary track, but as one poster mentioned we’re seeing both things: deflation in certain asset classes (real estate), and inflation (food, gasoline)
http://globaleconomicanalysis.blogspot.com/2010/03/marc-faber-and-mish-on-tech-ticker-mish.html
And oh yeh? Gold hit $1234/oz today. Everytime it goes up I cringe.
Helena Giorgi (Nouriel Roubini Interviews) says:
May 26th, 2010 at 3:19 pm
Dr Doom’s time in the sun will soon end. He has made some lucky calls in the past but his more recent work is too sour. Nonetheless we’ve put together some of his better interviews and articles at nourielroubini.financialanalystwatch.com please check them out when you get a moment.