MISH vs. Schiff battle heats up!

derryb

From MISH: Peter Schiff Backs Down from Debate with Mish 3rd Time After Agreeing to Do So

From Shiff: Mish Mike Shedlock Exposed, the Deflation Great Pumpkin

jmski52

When Mish ends his comments by saying that the US is heading down the same road as Japan but that Japan will have it's currency crisis first, doesn't that speak to a hyperinflation event?

derryb

Don't know that a currency crisis equates to hyperinflation. Depends on one's definition of a currency crisis.

jmski52

The references to a currency crisis indicate that it is when a currency loses purchasing power.

Baley

Link: US hyperinflation is a myth

Baley

More: Hyperinflation: the nightmare that will never happen

derryb

<< <i>The references to a currency crisis indicate that it is when a currency loses purchasing power. >>


US currency has steadily lost purchasing power since 1913, yet no hyperinflation.

jmski52

$85 billion a month of unsterilized new money going into long bonds now because there are no outside buyers. $1.3 trillion annual budget deficits. I wouldn't say that hyperinflation will never happen.

cohodk

<< <i>$85 billion a month of unsterilized new money going into long bonds now because there are no outside buyers. $1.3 trillion annual budget deficits. I wouldn't say that hyperinflation will never happen. >>




Excessive debt usually leads to deflation. One only needs to look at the most recent bubble--real estate.

derryb

excessive debt reduces demand, the buyers are all tapped out. This is why prices drop.

LukeMarshall

A nice little back and forth, I loled, one thing is for sure though...

We've ( USD) lost a lot of purchasing power since 2008 when compared to the Aussie Dollar...

Crocky Mate!

ttown

I'm not sure how it will pan out but I think more globally than most on the board. I wouldn't be surprised that the rest of the world didn't want US dollars so Joe 6 pack may have plenty of $$$ but there's no one that want to sell anything for them esp. if they aren't made right here in the US. If the Walmart can't get em then does it really matter how many $$$$ clones you have if it's not on the shelf?

cohodk

<< <i>excessive debt reduces demand, the buyers are all tapped out. This is why prices drop. >>



Yup. The best cure for high prices is high prices.

jmski52

Excessive debt usually leads to deflation.

Yes it does! (Which is exactly why Bernanke is pumping liquidity into the system.)


excessive debt reduces demand, the buyers are all tapped out. This is why prices drop.

Very true! (Which is what terrifies policy-makers most - a potential crash in equities and other assets would have the public up in arms and they would be thrown out of office, or worse.)


The best cure for high prices is high prices.

So, please explain why the Fed needs to pump $85 billion/month just to keep long bonds from crashing in price?

renman95

Whether hyperinflation or deflation we know the track record of fiat money with 100% certainty.