Mish Shedlock, Inflation or Deflation It's Definitely Deflation, Oct 15, 2009

[JasonRadley]

Credit destruction is outstripping money printing.

[TheEllipsis731]

The problem with this is that it is nearly impossible for a deflation to occur when there is literally no limit to how much the Fed can print... If we were on the gold standard, it would be massive deflation... But we're not...

[bearcat648]

There are definitely deflationary pressures, but the Fed will use any excuse to print money, so I don't see it being the main issue. Hyperinflation or at least high inflation is the end game of the whole process.

[Debugas]

it is really simple - americans are in huge debts and defaulting, the banks go with worthless defaulted mortgages to the government and ask to bail them out, government issues treasury obligations and gets money printed in return and gives the money to the banks. What happens when the time comes to buy back those treasury bills ? you got it - they issue new bills to cover the old ones. Chinese dont like it and try to get rid of both T-bills and dollars by buying gold and other commodities

[58robbo]

it's neither, it's the slow process of decoupling imo

[Djelomou]

I don't think there are many jobs in Zimbabwe but they still have inflation...what is the difference here? Very interesting to listen to Mish even though it adds to the confusion.