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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: John Vosilla who wrote (92397)3/18/2008 1:10:53 PM
From: Mike Johnston  Read Replies (3) of 110194
 
Mish should finally admit he was wrong.

We have had 10-15% annual inflation for the past few years, and even higher inflation is on the way. I expect 20% this year and 25-30%+ the next.

He was wrong, because his entire argument was based on the assumption that the Fed will not give money away.
That assumption has now been confirmed to have been wrong.

I have said it myself many times, the outcome of the deflation/hyperinflation debate rests on the willingness of authorities to monetize debt, it is as simple as that.

monetization = hyperinflation
no monetization = deflation

Deflationists keep pointing out the fact that bond yields are low, as if somehow that proves deflation. But bond yields are low as a result of monetization.

So the very thing that they point out as proof of deflation will ensure the exactly opposite outcome.
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