On the Edge with Max Keiser - 28 Aug 2009 - Mish Shedlock (2/3)

[bowtie728]

Mish goes on Lew Rockwell's show , Schiff goes on Rockwell's show, i like them both

[hjpoell]

So...

There are people who don't like Mish's style or haircut or whatever and decide to flame him.

And there are people who see that what the man says has the tendency to be spot on, and like him.

[TruthAxe]

Except that Mish is 100% wrong about deflation and inflation because he does not get the concepts that those words label.

Mish was 100% wrong about China as well. China decoupled as Peter Schiff said it would.

Had you bought China in 2008, you would have made bank.

Mish is a great shit stirrer. He's a great literary critic.

Yet, he believes, falsely about himself that he's a Misesan/Austrian while he still believes in Keynesian faerie tales like monolithic price levels.

[RoberTastic]

As long as the dollar has credibility then it will have an ongoing stable price structure. China could very well lead a revolution against the dollar, but it is far more beneficial for them to keep dollars and dollar instruments and keep the pressure on USA to strengthen it. The US government should heed that demand as hyperinflation would render the federal reserve and the government at large as fundementally worthless. Maybe I'm missing something here?

[TruthAxe]

"...an ongoing stable price structure." -- what does that mean?

That reads like a slew of meaningless buzz words.

As long as others accept willingly dollars for their products and their foreign currencies, the dollar shall have an economic value.

[RoberTastic]

you just restated what I said. Congrats on understanding what I meant.

[TruthAxe]

You amuse, RoberTastic.

Congrats on being schooled on how to express yourself properly about economics.

Maybe now, you'll leave your silly buzzwords at home.

[RoberTastic]

look i'm not trying to get a peepee contest over words and the inflation/deflation argument - I was just giving my thoughts at the time. Ive looked thru mish's blogs and find him somewhat irritating as he somewhat arrogantly proclaims the deflation argument as the cause for everything occuring, which Schiff has a far more pleasant demeanour while stating his viewpoint. Ithink decouplings happening or is @least in development.. Im thinking we could hit a heavy deflationary wave b4 hyperinflation

[markdcarter]

I think the inflation/deflation debate is a dialectical misdirection.

Money is manipulated by its mobby makers: there is no free market. We would do better with a people's currency: not some private central bank issue backed by force.

There's no point in repeating mainstream economic buzzwords or supporting the current monetary paradigm: it's doomed. So let's create something altogether better!

[TruthAxe]

Prior to 1913, the "people's currency" as you call it consisted of gold and silver.

This is what you get when you must suffer through irredeemable paper currency, one with it's value decreed by force -- it must be used to pay taxes and you must pay income taxes.

[markdcarter]

Gold and silver are poor candidates for a "people's currency". Which cartel monopolizes mining "rights"? Which fixers manipulate these commodities' prices? (Or do you imagine there's a free market in place? See the GATA vs. Barrick Gold class action lawsuit.)

Colonial scrip, which led to extraordinary wealth for the American colonies, was sabotaged by the feudalist British banking oligarchy. Benjamin Franklin states that this was the principal cause of the American Revolution.

[markdcarter]

The Anglo-European oligarchy is perfectly content with gold/silver as currency; also with private central bank-issued paper money/credit. Why? Because they can manipulate the supply of both, to suit their power lust and further their geopolitical agenda.

"Decreed by force" is indeed a central issue! Where is voluntarism - a free market with competing currencies - in that?!

Paper money/social credit ought to be used to move goods and exchange services: it needn't be "redeemable" in metals.

[puredenton]

*applaudes*

[TruthAxe]

You amuse me, markdcarter.

Did you know that all the gold ever mined for all time would fit inside only two Olympic-sized swimming pool?

Gold trades freely on open markets.

You're panicked over the Global Central Bank cartel that manipulates the gold market, allegedly.

Why? Because they have a vested interest in propping up their legal tender currency.

[markdcarter]

How would you know how much gold was ever mined? How presumptuous of you to think you were informed accurately on this matter. Do you have access to, say, NASA satellite data showing gold caches around the world? No? Then you're regurgitating received information.

You're severely misinformed if you imagine gold trades "freely on open markets".

I'm not panicked about this at all: I simply see things as they are here, for I've done my homework.

Damn right they have a "vested interest"!

[TruthAxe]

Mish is wrong and hopelessly confused.

Everywhere, ongoing DEVALUATION is happening.

Mish confuses devaluation and recession for deflation.

Deflation and inflation are purposeful acts of central bankers. When central bankers raise the interbank lending rate, raise reserve requirements or buy govt treasuries, they deflate. When they do the opposite, they inflate.

When persons stop buying or reduce their willingness to buy unless induced by lower prices, they DEVALUE.

[TruthAxe]

What we're experiencing now is recession moving into depression because economic output and transaction has been falling.

Why? Credit growth has contracted and thus the want to buy luxury goods (an economic term) as well as machinery and equipment.

Mish confuses deflation with recession.

Bernanke deflated a long time ago, shortly after taking over for Greenspan. Since the recession began (August 2007), Bernanke has been inflating.

The problem is bankers are broke and cannot rent cash.

[TruthAxe]

Mish is the "most insightful blogger"? What a joke.

Mish amounts to nothing more than a literary critic. All he does is comment on others' writing.

Mish is no Marc Faber, no Jim Rogers, no Hugh Hendry.

Inflation is a central bank act, when central bankers reduce interest rates or reduce reserve requirements. Deflation is the opposite.

Mish, confuses a fall in credit growth with deflation.

By his own words, Mish says "I am not an economist." and it shows.

Bankers can't lend. They're broke.

[koba785]

This guy Mish sounds like a Joe Biden impersonator; he can't stop talking. That's always a clue that the talker is full of hot air. Did you hear him say that he's "not an economist"? Yet he describes Ben Bernanke, one of the world's mot prominent economists, as a "complete fool." Bernanle will be around long after Mish-taken has gone back to selling bibles.

[Renegen1]

He says some good stuff, don't worry.

[BlindWebster]

Apparently that fact that Bernanke has been consistently wrong and Mish consistently right is irrelevant

Also apparently prominence is correlated to correctness.

I would refer you to an explanation of Stockholm syndrome

[phxfreddy]

Who is this squeaky little queer? Appears to be Gilbert Gottfried.

Liberals are almost always wrong almost all the time.

[u2canbfmj]

He's Max Keiser and He seems Libertarian to me.

[BlindWebster]

I like reading Mish, but Max is on a whole other level when it comes to reporting on the big picture.

[behearsoon]

I asked several of the "the little strip mall business" in my area that I patronize,,, and I can tell you somebody is doing some lying...cause they are telling me that their business is off by as much as 50% and several indicate they will close their doors. I suspect the business man is tell me the truth and the banks are lying.

[behearsoon]

Didnt the FDIC come out last week and report that the banks are sick, and we will see 400 banks (at least) that will either close or will be siezed before the end of 2009?

[RCinPAWA]

Mish tells it like it is. Fantastic interview.

[mrgoodvibrations]

Max and Stacy are not only informative, but also very entertaining.

[WillsonMartin]

Why is Stacy never in the studio? Excellent show.

[mrgoodvibrations]

Look at old episodes they have been on the same set.

[vsaldanas]

Is Wells Fargo Bank going down?

[quicktripgas]

I hope not, thats where my money is :(

[rahuntrealty]

i would not be surprised, everytime i go in to deposit a check or talk to a teller, they want to ask why i dont have a saving account and i can set one up for free! that tells me that the bank is not doing well. fractional banking at its best.

[behearsoon]

Yes, this is happening to me too.

Everysingle time, I go into the bank, they try to get me sign up for their saving account "round up the change".

It's actually quite annoying.

[caveltor]

Im so thankful for Stacy. Max starts of in a rant and then in comes Stacy as the voice of reason.

Its a good bad cop good cop act.

And shes cute!

[SaveOurSovereignty3]

Canada is fine, they actually have a pretty sound national mortgage policy, with the purchase of each home the buyer has to contribute a set amount of money as a type of insurance in the case of mortgage default.

Its a big pool of money basically for banks that acts as a giant cushion for them if something goes wrong.

[SolitonPL]

This is what I don't like in MISH! Everyone is fool?! Yeahh right? FEDs are stealing tons of money from the Americans and he don't get it! They pretend to look like fools but in the meantime their pockets are growing exponenial.

[ReptilianOverlord]

Max rips it up everytime!

[sandman4224]

Mish is half right. When the stimulus packages hit mainstream we will have hyperinflation until it wears out. In a true deflation, the dollar would strengthen and gold/silver would decline which isn't true from 2000 - present. Google Robert Chapman who writes the international forecaster for more on this.

[ExquisiteDoom]

Yea, i found that rather odd from Mish. No shit there would be a short momentary deflation, that wasn't even a mystery. But one day the interests rate will HAVE to go back to a competitive rate or someone major will... Sell his bonds! The Austrian school has been right before about this and will be right again. We might even (well, probably) get some stagflation , since you can't just remove cash from the population then give it back to unproductive individuals. Hold on to your silvers!

[ScottishViking1977]

Bernanke is doing what he thinks is right, destroying America is his plan.

[flyhead2]

The US has been borrowing its way out of debt for decades.

[DavidAKZ]

you must be joking !

[frontier1701]

Shedlock had some rather negative things to say about Peter Schiff (who has been quite right in the past)

[DavidAKZ]

for example ?

[hugolp]

Oh, not Mishy. Kaiser you are a good economist. Dont get involved with people like Mishy "I lost it all in treasuries".

[hatchi58]

first! haha I LOVE THIS SHOW!!!``

Cool hair Max, ty for the truth! When are you and Stacey gettin hitched?

[craigmason84]

MAAAAAAX!