Mish Shedlock, Gold as deflation hedge, Oct 15, 2009

[John20xd6]

@kingjojothegreat

Exactly thats pretty much the argument. Its just basic technicalities in the sense of words and definitions. They just have different ways of looking at things.

[EngineeringFun]

In retrospect the dollar kept falling. This guy was probably a much better programmer than he is an economist.

[kingjojothegreat]

The difference between Schiff and Shedlock are not that different. Semantics might be their greatest argument.

[TheBigdick888]

I totally agree with him! Only Banks got bail out....not the people!!!

Obama suck!!!

[TheCashistrash]

Gold up 25%+ for the last 12 months wohooo chiching chiching. sure glad I bought my 100 hundred ounces of gold and 200 ounces of silver. This run has just begun. There is already talk about a second round of stimulus in late 2010 early 2011. The stimulus from what I read is going to be anywhere between 1-4 trillion dollars. If the second round of stimulus occurs expect gold to keep rising for at least another 2 years.

[WAR1292]

ron paul looks like hes about to sneeze

[ptan54]

100% spot on about the USD.

[gogolando]

You think?  Moron!

[peterrehak1]

what kind of ron's picture that was@?+

i think he was looking in the future, longterm, realizing, he is not able to do anything about the collaps of america...

[Debugas]

Mish's mistake with deflation is that he thinks people will continue repaying their debts (which is indeed deflationary). The reality however is that people will increasingly default on their debts and it means money stays in circulation OR government bails you out by printing new money. So i vote inflation not deflation simply because debts always get covered by new money printing with new debts

[abcdefghix2006]

If you invested with Mish this year you got your nuts crushed.

[ozwasp]

Apart from the last week, Mish has been off the mark

[svenp]

Yes, he believes in Austrian Economics. Look it up.

[Ddonjuan]

What kind of picture of Ron Paul was that?

[ytertyu]

I find Mish much better forecaster and intellect than wall street idiot called Schiff ..however Mish is less known

[svenp]

Mish wouldn't call Schiff an idiot and you probably shouldn't either, their views line up together very well.

Mish and Schiff are both Austrian economists, they generally believe the same things. Schiff however, is more long term focused, he's not trying to time the market the way Mish is here.

If you listen carefully, Mish also believes the dollar will go into the toilet, same as Schiff. He just thinks there will be a temporary boost during the next round of deleveraging.

[ytertyu]

long term ? what long term ?? as mr.K said "in the long term we are all dead" ! you americans are hilarious .. your economy , and social structure is in deep shit , but that doesn't stop you lecturing others , does it ?? if I need a lesson in economics I am gonna get it from Hayek , or Friedman , not from media-monkey called Schiff or one of his bitches

[europa]

Wow your pompous attitude stifles any intellect you may contain, because horrible intent behind politicians that are puppets make a calculated hit on the global economy you deem the public worthy of insult. Schiff is schooled by all you mention including Ludwig von Mises and Murray Rothbard, America is the only thing stopping a global take over of power and wealth, we have a constitution that allows us to fight an uphill battle to help all nations. Learn from American spirit not CIA propoganda

[ytertyu]

screw schiff ..who cares what he says , anyway .. USA used to be the best country on earth , till scumbag Jews invaded and took over wall street and washington . nothing will get better if white men don't wake up and unite against those blood sucking parasites

[takforalt]

He is a shill for the dollar. He wants you to hold on to it so the decline is that much slower with no panic. But I think people are waking up to this bull. There are so many dollars out there that if people start to lose confidence it will be katie bar the doors. Long term gold and silver is a no brainer to hold on to your wealth not paper fiat fed res notes.

[Lucky7wins]

That guy is an idiot. Money printing out of thin air is called inflation. The result of inflation is a weaker dollar and higher consumer prices.

Its simple really, but these people on TV don't seem to care about the long term implications of their advice and beliefs of a strong dollar.

Don't be fooled. You can gamble in the US stock market and win lots of money, but you can also lose it all as in the case of AIG and Bear shareholders.

Besides making profits in US dollars is devaluation.

[Nuanceqwest]

Lucky7wins NO YOU ARE WRONG!!!

PRINTING MONEY TO STORE IN BANK VAULTS IS NOT INFLATION. BUSINESSES AND HOUSEHOLDS WILL NOT SPEND BECAUSE OF FEAR OF LOSING THEIR JOBS AND CUSTOMERS.

Even if they were spending that money there is more debt than they have "printed" . Look at how a 1 trillion dollar stim pack brought people to the streets , that is just a fraction.

Japanese and Chinese seem to like our debt just fine are they nuts?

[LeedansParis]

Thanks for that Nuanceqwest. It's refreshing to hear someone understand the deflationary nature of the MASSIVE debt still in the system.

At some point however, there is a tsunami of inflation looming when the new money finally hits (aka Erid Janszen's ka poom theory).

Also, I think it's clear that China and Japan are looking to safely and quietly exit the dollar.

[Azbx23]

Couldn't find a better pic of Ron Paul, Yahoo Tech Ticker (5:28)?

[anthrobserver]

Mish is pretty good, has a good blog. He's no dummy.

[LeedansParis]

Agreed. His blog is fantastic.

He does seems rushed here though; without enough time to flesh out his ideas.

However I can say that only because I know just how good his blog is.

[OttoVonKonrad]

Notice the blinking. This guy is out to lunch.

[bluecat1122]

I think what he's saying is he doesn't know what's going to happen