tag:blogger.com,1999:blog-4921988708619968880.post6989191746924141055..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: July 5 2009: The unbearable mightiness of deflationIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger84125tag:blogger.com,1999:blog-4921988708619968880.post-57445713793819936182009-07-10T07:46:24.912-04:002009-07-10T07:46:24.912-04:00(continuing from above)
Finally that old, battere...<i>(continuing from above)</i><br /><br />Finally that old, battered question on the status of the US$ as preferred reserve currency. There's an immediate repulsive reaction by Americans in particular, and anglophone folk in general, whenever this issue comes about, dismissing it simply as anti-American rant. Such reaction is barring many from acknowledging that the system where the US leadedAnonymoushttps://www.blogger.com/profile/08895745055248556694noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-20887127528273112072009-07-10T07:43:42.621-04:002009-07-10T07:43:42.621-04:00Dear Stoneleigh,
I just read this article and als...Dear Stoneleigh,<br /><br />I just read this article and also recently the previous one with the 40 points about Deflation. What I like about these two writings is that it makes your perspective perfectly clear, making it easy to understand and interpret. I also welcome very much your address of what is Inflation and Deflation, two terms that directly refer to Money Supply, the first to expansionAnonymoushttps://www.blogger.com/profile/08895745055248556694noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-87878322776682270742009-07-07T02:13:19.691-04:002009-07-07T02:13:19.691-04:00I had to give up on that North article after this:...I had to give up on that North article after this:<br /><br />"Inflationists respond to the falling M1 money multiplier along these lines. "Bankers must pay depositors a rate of return. The banks are being paid by the FED for excess reserves, but only at the federal funds rate: barely above 0%. If banks do not start lending, they will be bled dry by payments to depositors. The bankers Markhttps://www.blogger.com/profile/07461387600942669716noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-63682571793516678282009-07-06T23:19:39.843-04:002009-07-06T23:19:39.843-04:00New post up
-------------------
GYC,
more on th...New post up<br /><br />-------------------<br /><br />GYC,<br /><br />more on the same topic in today's postIlargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-75682686829939866622009-07-06T22:46:33.507-04:002009-07-06T22:46:33.507-04:00Linked the Stoneleigh pice tonight, so should be o...Linked the Stoneleigh pice tonight, so should be on SeekingAlpha 2 morrow. Very persuasive indeed. I think our only disagreement is that ben "deflation: it wont happen here" bernanke will pull out all the stops to make sure some slow debt unwind/deflation does not happen. Still, I cannot argue your presentation, top notch!EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-89876258540963326092009-07-06T21:51:52.367-04:002009-07-06T21:51:52.367-04:00http://europe.theoildrum.com/node/5538#more
The l...http://europe.theoildrum.com/node/5538#more<br /><br />The latest cornucopian fantasy! Atleast it's better then space based solar power articles.<br /><br />What say you folks? Are we saved! Is limitless energy here?VKnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-54423868956161808802009-07-06T21:33:08.752-04:002009-07-06T21:33:08.752-04:00@DIYer
Yes I remember reading that Greer post. St...@DIYer<br /><br />Yes I remember reading that Greer post. Stoneleigh suggested that ordinary Americans might not be able to afford any oil products in a 5 year timeline. That would be a shocking drop in living standards indeed! <br /><br />The worst bit is not that iPhones, cable tv, real time stock feeds and movies might be gone forever but that the world really depends on oil for food VKnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-85906890499758019872009-07-06T21:24:23.429-04:002009-07-06T21:24:23.429-04:00DIYer says:
"There is no doubt about our eco...DIYer says:<br /><br /><i>"There is no doubt about our economic trajectory at this point."</i><br /><br />This sort of thinking can be deadly.<br /><br />There was also no doubt that the Titanic was unsinkable.<br /><br />There was also no doubt, as shown in the Peter Schiff videos, that he was dead wrong about what was coming.<br /><br />What if they literally start printing dollars anAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-51991277900365014632009-07-06T21:18:27.797-04:002009-07-06T21:18:27.797-04:00Ian
Good article link. Thanks.Ian<br /><br />Good article link. Thanks.el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-79327236743656934152009-07-06T21:09:12.622-04:002009-07-06T21:09:12.622-04:00And Ian,
Yes; no.
As Stoneleigh so clearly exp...And Ian, <br /><br />Yes; no. <br /><br />As Stoneleigh so clearly explains, the financial tinkering we have seen so far, including issuing trillions in new credit, is like trying to stop a hurricane with a table fan. She has buttressed her case with facts and common sense, making correct predictions while the "goldbugs" and a lot of "mainstream economists" continue to dither Jim Rhttps://www.blogger.com/profile/17419179432204743768noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-47789242336969543982009-07-06T20:59:48.949-04:002009-07-06T20:59:48.949-04:00the link below is perhaps easier to read than thei...<i>the link below is perhaps easier to read than their .PDF file.</i><br /><br />It's in the upcoming post.Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-27653967670903267512009-07-06T20:56:59.393-04:002009-07-06T20:56:59.393-04:00Assuming we don't face a complexity collapse m...<i>Assuming we don't face a complexity collapse meaning that the stuff we take for granted today, everyday items like tv's, car spare parts, ...</i> <br /><br />VK, John Michael Greer's catabolic collapse theory has a lot of resonance for me. We've mentioned it here before. It's not at all unreasonable to think that the "stuff we take for granted", including Jim Rhttps://www.blogger.com/profile/17419179432204743768noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-32096563073626836672009-07-06T20:41:26.341-04:002009-07-06T20:41:26.341-04:00Another article to ponder:
Once again it's th...Another article to ponder:<br /><br />Once again it's the Big Question:<br /><br /><em> <b> Are we facing a deflationary spiral or will the monetary and fiscal stimulus ultimately create (hyper) inflation? </b></em> <br /><br />I always enjoy nice charts and this article even has one from Zerohedge. The original article actually comes from Absolute Return Partners website www.arpllp.com but Iannoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-62909504841989009112009-07-06T20:28:32.423-04:002009-07-06T20:28:32.423-04:00Hi Stoneleigh,
"For those with no purchasing...Hi Stoneleigh,<br /><br />"For those with no purchasing power, almost everything will be unaffordable, but those with money will clean up for pennies on the dollar."<br /><br />Assuming we don't face a complexity collapse meaning that the stuff we take for granted today, everyday items like tv's, car spare parts, scissors etc are still available! I can imagine that hundreds of VKnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-46298637369316953502009-07-06T20:14:14.705-04:002009-07-06T20:14:14.705-04:00Just a note that we are on stimulus number 2, one ...Just a note that we are on stimulus number 2, one for Bush and One for Obama.ronaldhttps://www.blogger.com/profile/15434598599683516372noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-83592352427632095662009-07-06T19:58:18.606-04:002009-07-06T19:58:18.606-04:00Given North's religious (Christian Reconstruct...Given North's religious (Christian Reconstructionist) and political (Domionionist and theocratic neofacist) beliefs, I have never been able to take him seriously as an economist. <br /><br />That he is a follower of the Austrians and the crowd at LewRockwell.com makes me even more inclined to disregard his views.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-43323433390046227282009-07-06T19:51:58.733-04:002009-07-06T19:51:58.733-04:00Anon @7:18,
Predicting collapse means nothing wit...Anon @7:18,<br /><br /><i>Predicting collapse means nothing without the context of how and why.<br /><br />Everyone and their uncle have manned soap boxes and carried placards saying were doomed, Repent.<br /><br />The context of this mega collapse, is ponzi bubbles. One stupid one after another.</i><br /><br /><a href="http://theautomaticearth.blogspot.com/2008/11/Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-37660489124086459752009-07-06T19:50:46.833-04:002009-07-06T19:50:46.833-04:00Stoneleigh,
Thank you for the great intro. It alw...Stoneleigh,<br /><br />Thank you for the great intro. It always helps me some ... I understand that it is all about deflation for a while and then when things are really falling apart it shall be hyperinflation. :)Ahimsanoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-41019195939187342572009-07-06T19:43:28.369-04:002009-07-06T19:43:28.369-04:00Anon @5:29,
If Stoneleigh believes that money is ...Anon @5:29,<br /><br /><i>If Stoneleigh believes that money is credit, and she knows that trillions and trillions of dollars were added to the money supply as a result of credit, why did we not get massive inflation as the credit bubble grew?</i><br /><br />Credit hyper-expansions don't behave in the same way as as currency hyper-inflations. What we saw was asset prices going through the roofStoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-12080099265594742172009-07-06T19:23:12.487-04:002009-07-06T19:23:12.487-04:00Mugabe,
If on the other hand, price levels are re...Mugabe,<br /><br /><i>If on the other hand, price levels are reliable, lock-step lagging indicators of inflation / deflation defined as a monetary phenomenon, then deflationists should stop scowling at us naifs who use the words interchangeably.</i><br /><br />That's the point - prices are not a reliable, lock-step lagging indicator of changes in the money supply. Inflation and deflation are Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72396685439656825492009-07-06T19:21:26.938-04:002009-07-06T19:21:26.938-04:00If discretion is the greater part of valor, then h...If discretion is the greater part of valor, then humility is the greater part of genius.<br /><br />The only way you're even gonna come close to being right all of the time is to quickly notice when someone is righter than you are... and revise your thinking accordingly.<br /><br />The point about all of this discussion about inflation vs deflation is not to SCORE points, it's to GET the D. Benton Smithhttps://www.blogger.com/profile/09505763959328162067noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-16230124135426636232009-07-06T19:18:46.790-04:002009-07-06T19:18:46.790-04:00I predict it will be 2 o'clock, twice a day.
...I predict it will be 2 o'clock, twice a day.<br /><br />Predicting collapse means nothing without the context of how and why.<br /><br />Everyone and their uncle have manned soap boxes and carried placards saying were doomed, Repent.<br /><br />The context of this mega collapse, is ponzi bubbles. One stupid one after another.<br /><br />The last several bubbles were prevented from being 'Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-15196935763626547572009-07-06T18:58:43.917-04:002009-07-06T18:58:43.917-04:00el g:
The entire Austrian School of Economics pre...el g:<br /><br />The entire <a href="http://en.wikipedia.org/wiki/Austrian_School" rel="nofollow">Austrian School of Economics</a> predicted this current credit crisis. The Austrian School's philosophy can predict and explain economic conditions.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-12122206664773508072009-07-06T18:46:44.016-04:002009-07-06T18:46:44.016-04:00el g:
~From Chapter VI "Credit Diverts Produ...el g:<br /><br />~From Chapter VI "Credit Diverts Production" in Henry Hazlitt's "Economics in One Lesson," first published in 1946 <br /><br />Government-guaranteed home mortgages, especially when a negligible down payment or no down payment whatever is required, inevitably mean more bad loans than otherwise. They force the general taxpayer to subsidize the bad risks and Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-19894184787259845122009-07-06T18:40:47.940-04:002009-07-06T18:40:47.940-04:00el g:
Some of us have seen this coming for a lot ...el g:<br /><br />Some of us have seen this coming for a lot longer than I&S and probably yourself. There is not just one road that leads to Rome, my friend.Anonymousnoreply@blogger.com