Mish Shedlock vs Peter Schiff Deflation vs Inflation Debate
Mish Shedlock is back on the media focus after having been amongst the very few economists to warn about DEFLATION instead of INFLATION as many many others have been warning about Marc Faber Jim Rogers just to mention few , Max Keiser talks to Stacy Herbert about the Peter Schiff versus Mish Shedlock affair and the inflation deflation debate
Click here to watch Mish Mike Shedlock interview with Max Keiser of last week
recorded on September 2nd 2009
Mike "Mish" Shedlock of Global Economic
Trend Analysis and Sitka Pacific
Jim rogers Warren Buffett jim puplava financial sense newshour
Category: News & Politics
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max keiser peter schiff mike mish shedlock jim puplava financial sense newshour inflation deflation debate fed federal reserve central bank silver bullion gold price economy Jim Rogers Warren Buffett marc faber don harrold battle royale Berkshire Hathaway NYSE BRKA BRKB Omaha Nebraska Euro pacific Sitka Pacific Capital Management fund account portfolio gain loss china yuan renminbi dollar recession depression
Click here to watch Mish Mike Shedlock interview with Max Keiser of last week
recorded on September 2nd 2009
Mike "Mish" Shedlock of Global Economic
Trend Analysis and Sitka Pacific
Jim rogers Warren Buffett jim puplava financial sense newshour
Category: News & Politics
Tags:
max keiser peter schiff mike mish shedlock jim puplava financial sense newshour inflation deflation debate fed federal reserve central bank silver bullion gold price economy Jim Rogers Warren Buffett marc faber don harrold battle royale Berkshire Hathaway NYSE BRKA BRKB Omaha Nebraska Euro pacific Sitka Pacific Capital Management fund account portfolio gain loss china yuan renminbi dollar recession depression
Interesting,
ReplyDeleteYeah, I struggle to know who to believe on this subject! From the reliable experts that is.
bad analysis. to say monetary inflation is cancelled by debt is flawed. the debt is still spent. it is correct to say that the huge increase of monetary supply didn't cause inflation because it wasn't spent, it was horded by the banks. the actual equation of inflation vs. deflation is multi-dimensional. some things inflate in price while other things deflate and for multiple reasons in each case.
ReplyDeleteDear Max,
ReplyDeleteI am really surprised that you called this guy in your program.
Even more surprised that you did not destroyed his ignorant and arrogant view.
If you take a look on his blog – you can understand why arrogant, but “ignorant” I would explain now.
Mish “predicting deflation in USD” for years now and reason that we did not see anything of this should raise some questions:
- For example – why?
I think that you know very well the answer but would not to be impolitely to this guy.
Mish “teaching” (arrogantly) that money supply is:
Money in existence + credit
Wouu!
But he did not explain what those are together:
Money in existence + credit = PROMISES(or better “paper promises”) of governments.
With those “paper promises” – people can buy REAL commodities or REAL services or let’s say REAL “things”.
When you have situation that “paper promises” are perhaps at 1 quadrillion USD (or even more?) and REAL “things” values are at fraction of it the formula looks like:
“Paper promises” >> REAL things
Obviously there are way too much “paper” out there and too little REAL things.
Since economical low always tends to equilibrium in a time frame i.e. values of:
“Paper promises” ~= REAL things
It would be quite stupid to give explanation that “value” of “paper promises” (i.e. USD and Goldman owned US government) – will “increase”!
That is EXACT what Mish “the prophet” – “predicting”.
Give me a brake, please.
Obviously we have INFLATION in “paper promises” and DEFLATION in REAL THINGS.
So if we really force us to accept ignorant Mish's “the prophet” deflationary view – it can be ONLY deflation in REAL THINGS - NOT in “paper promises” (obviously those days).
You know the reason that Mish “had right” and earned some money Max.
The reasons are:
- fraud and corruption by US government and GS which controlled it (you talked often about it)
- manipulation of the market by those “factors”
- Attempt from other governments to protect value of their reserves and present monetary system based on USD.
So Mish had NO IDEA what happened, but had a simple luck with manipulators and other central banker’s interventions. He is NOT at all one long term investor but simple lucky beginner.
Shiff is on the other side – far more real and long term investor which based his valuation on the underlying economical principles.
You already talked about present situation.
It looks that not only China but even other countries nervously try to escape from USD denominated “assets” since they are ONLY “paper promises” and there are INFLATION of it.
They try to escape to the REAL THINGS (which is DEFLATION out there!)
Since DEFLATION means – PANIC… it is to expect very soon some kind of panic to the REAL THINGS.
You are many times explained that our USD based system is great Ponzi scheme.
It always crash when you can NOT find anybody to buy your “paper promise”. It crushes – instantaneously.
Now come to Mish “the prophet” and his “prediction” that actually in Ponzi schemes “paper promises” – will “gain” in value in comparison to the FEW REAL THINGS?
What hapened THIS instant with REMAINING “paper promises” when you exchange the FRACTION of them to the REAL THINGS???
Correct.
Remaining “paper promises” will be worthless - as always in Ponzi Scheme.
Dear Max,
Mish “analyses” are worthless and idiotic.
The best would be to simply DELETE this idiot from your otherwise – very good blog.
Kind regards
Dear Max,
ReplyDeleteI am really surprised that you called this guy in your program.
Even more surprised that you did not destroyed his ignorant and arrogant view.
If you take a look on his blog – you can understand why arrogant, but “ignorant” I would explain now.
Mish “predicting deflation” for years now and reason that we did not see anything of this should raise some questions:
- For example – why?
I think that you know very well the answer but would not to be impolitely to this guy.
Mish “teaching” (arrogantly) that money supply is:
Money in existence + credit
Wouu!
But he did not explain what those are together:
Money in existence + credit = promise (or better “paper promises”) of governments.
With those “paper promises” – people can buy REAL commodities or REAL services or let’s say REAL “things”.
When you have situation that “paper promises” are perhaps at 1 quadrillion USD (perhaps even more?) and REAL “things” values are at fraction of it the formula looks like:
“Paper promises” >> REAL things
Obviously there are way too much “paper” out and too little REAL things.
Since economical low always tends to equilibrium in a time frame i.e. values of:
“Paper promises” ~= REAL things
It would be quite stupid to give explanation that “value” of “paper promises” (i.e. USD and Goldman owned US government) – will “increase”!
That is EXACT what Mish “the prophet” – “predicting”.
Give me a brake, please.