<for their theory to be consistent they can't admit that this boom will end and result in falling prices. it's their achilles heel.>
I guess he doesn't put me in the company of Bugos and Saville, <g> as this is an easy one, primarily because once again the two of you ignore how prices are set, in US Dollars. A housing bust will wreck the US economy, and correspondingly the remaining myth about the USD, namely that the US is a "vibrant" economy, and is a "magnet" for the world's capital, and other such bogus nonsense. Once this illusion is shattered the USD will get dumped, relative to real assets, especially precious assets or stronger currencies. It (the USD) will have greatly diminished purchasing power, and that's the key point of my Inflationary Bust/Train Wreck/Crack Up Boom argument. I even feel economic assets like food, metals, and energy will fare well relatively to the USD. Now if he's arguing prices will deflate against gold, or some remaining surviving "super-currency", then yes, there will be deflation, but that doesn't appear to be your or his argument? |
