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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (27388)	3/12/2010 12:26:53 PM
From: Real Man	Read Replies (3) \| Respond to of 71456

Inflation/deflation debate is pure nonsense, IMHO, because flations depend crucially on monetary policy and the policy of printing money in particular. The latter cannot be known in advance. I share Jesse's view on that. That said, US government insolvency and US current account deficit were known in advance. What gives? I think both camps are exaggerating, but, most definitely, the crisis is unfolding via a combination of devaluation and default. The exact proportion simply cannot be predicted.

To: DebtBomb who wrote (27388)	3/13/2010 9:38:25 AM
From: Real Man	1 Recommendation Read Replies (4) \| Respond to of 71456

Mish also banned Bart. This is more related to his inflated ego, rather than an honest discussion. I respect Bart very much, and he runs extremely useful analysis on his site, nowandfutures.com. His analysis showed M3 moving at 16-20% annual clip in 2007-2008, which certainly contradicted "deflation" argument, rather, it was confirming credit-induced crack up boom. That included commodities going ballistic in early 2008, and a food crisis that broke out in many countries. Mish happily sang his deflation song in 2002-2008 because of his ego, while all indicators pointed to devaluation and inflation. I guess he thinks the government overstates CPI as well, cause it claims prices increased 25% in the last decade, rather than dropped (as in deflation) -g- And yes, anybody in their right mind knows that if a country hits a deep recession, consumption and prices will drop some. That category of folks include stock market bulls. -g-