No, last Summer there was none. The Fed tried the loans first,
then they started printing some. When that didn't work, they
started printing a lot. Some hard core deflationists are
funny. When M3 expands, they say it's all debt, so it does
not count. What counts is the printing. Now that the Fed
is printing like a madman, they say printing does not count,
what counts is the dropping M3, and "money evaporates".
So, literally, now that M3 is dropping and the Fed is
monetizing like a madman, decades of double digit growth
of M3 don't count. Go figure. Oil rose faster than spoos,
from October 2008 bottom. -g-
I figure $10 to $150, then back to $30, then back to $80 is
quite a yo-yo, but it ain't deflation. There is too much
debt. That is right. However, debt destruction "the American
way" - err, Ben's way, is very inflatonary.
John Law's experiment was quite similar to the Fed's experiment
running mega bubbles in the past 2 decades. Somehow it
ended up quite inflationary, as everyone in France started
using specie. It's not unique in history, but it ain't
the same as the GD. |
