Paul Brodsky: The Seeds of Our Destruction Were - And Still Are - Sown in the Bond Markets

[definitionofis]

He was doing well until 39:50 where he should have said the devaluation will be against the level of past wages and goods and services prices, such that they all rise very quickly. Instead, he goes off in a gold and gold standard tangent, which has absolutely nothing to do with how a currency debasement happens and has more to do with creating a new confidence game. The stall on this inflation has been China. When or if China inflation explodes then the Fed's debasement will have traction.

[velvet01able]

Just because your paycheck went down 25% doesn't mean "deflation" dumbasses. What did your cost of living do? Stay the same? Maybe decrease? Of course not........IT ROSE. SO what does this all mean? INFLATION, shithead. Getting squeezed at BOTH ENDS because YOUR corrupt government PRINTS MONEY and INCREASES TAXES and CUTS YOUR BENEFITS all to benefit the banksters. This is al you need to know. Now go fuck off deflationists.

[PriorySoulTemple]

Money doesn't exist. What exists grows on trees.

[christo930]

If all money is issued as debt, how can you inflate away debt? If it takes additional debt to increase the money supply, aren't you simply reducing the debt load of individuals and putting on the collective? If that's the case, isn't it really just taking less money out of one pocket and taking more out of the other pocket?

[Go2thebeach69]

quit yelling at one another... deflation is only temporary then you get more money printing which is inflationary then it gets out of control leading to hyperinflation then ultimate deflationary depression.... this is right out of the playbook guys... they will not let deflation happen when they can buy more time through printing. Too much money vs. not enough money Too much debt not enough income to cover the debts. Print money debt goes to zero. Then reset start over

[louis12346]

Real money is plastic digits backed by Hillary reading Bloomberg ?, US Military ?

[nanomyou5]

Great piece, but Brodsky does NOT over-simplifies inflation.

He has to make a difference b/w monetary base, amount of (commercial bank) money and different money aggregates.

Then he has to define to which items do the printed dollars go through which intdermediaries and which mechanisms.

If he doesn't do this, he is just over-assuming that the money will end up in consumers hand. No guarantees on that.

Most likely is commodity/fin. assett price inflation via investing.

[mrblack61]

@nanomyou5 This is n area im trying to get my head around atm, the difference between base and broad money. Recently BOE has spent 75 billion (quantatative easing) buying up toxic assets from com banks, the public wont see a penny of that i expect as the com banks arnt in a lending mood atm.

So where will that end up? Long stocks / metals perhaps? Reserved in preperation for Greek default!

Crazy times

[Minethis1]

At least this guy a bid more rational than the other end of world clowns.

[XESTISS]

It is interesting to me how Credit doubled as China's money supply doubled. It is also interesting to me how an agenda is being pushed pretending that this is a "FED" problem not a world credit problem.

Mr. Brodsky hasn't shorted Bonds because he would have gotten crushed! He can make up 1000 reasons why he thinks it is "distorted"! The fact remains that rates are low! Period end of story! Words like "Should" "If" "because" "possible" are meaningless!

China only owns 1.1 trillion in treasury

[TheBullionBull]

@XESTISS Rates were low in Greece a few years ago.

[XESTISS]

@TheBullionBull If the ECB Printed like they should have in the first place Greece's rates would still be low. Now they will print 10X more trying to plug up holes! Long live the FED!

[jimbobubbadj]

@XESTISS Money supply increasing much faster than growth doesn't seem sustainable to me.

[XESTISS]

@jimbobubbadj "Money supply increasing much faster than growth" Question During what time period? FYI Money as a whole is stagnant in the past 3 years. Credit is contracting while the money supply (physical) is increasing at the same rate. Net is what? Zero. you don't believe me? Go out and try to get a loan. Let me know how that goes for ya! Good Luck!

[mrblack61]

@XESTISS but words like 'if' are meaningless remember! ;)

[CitizenNumber]

@mrblack61 Not when used in the context of the past . ;)

[XESTISS]

@mrblack61 "if" ECB printed Greek bonds would low today is a fact! "If" China sells dollars is fortune telling! Trying to play with words is weak.

[mrblack61]

@XESTISS Was intended as a jk mate. No need to spit the dummy! ;)

[XESTISS]

@mrblack61 Got it! ;) 

[TheBullionBull]

@XESTISS Who cares if they printed in the beginning - if Greece still had a huge deficit, the problem would just have come up again in a year or two. Printing money out of thin air doesn't create real value or production. I can print all the "Bullion Bull Dollars" I want down at Kinkos and it won't provide me any real goods or services.

[XESTISS]

@TheBullionBull "Who cares if they printed in the beginning " Your kidding right? I am not going to sit here and teach basic economics to you.

Had they printed they would not be in this mess today. This is a fact. As for your real value crap what is their value now? ZERO! They are in a deflationary spiral. Had they printed, their bonds would still be low and debt would have been paid down over time. That is real value! Defaulting destroys the value of everything! ZERO!

[TheBullionBull]

@XESTISS The Euro is not in deflation, that is silly. It is in the $1.30's like usual. Greece is just a small part of the EU. If South Carolina went bankrupt, would that cause a "deflationary spiral" of the whole USD? Of course not. The risk to the Euro is purely political, not deflationary.

[XESTISS]

@TheBullionBull EUROPE IS NOT IN DEFLATION??? Avg income went from 1000 euro to 750 thats not DEFLATIONARY??? LOL you are in outer space some where! WTF is it? They lost 25% of purchasing power to AUSTERITY! Thats 25% less money to be spent in the economy! 25% less tax revenue for Next year YOU MORON! HOW will the economy Grow when people have 25% less to spend! CREDIT GONE! What is Political 25% less? THATS DEFLATIONARY SPIRAL TO ZERO! Who gains? NO ONE! You lost all credibility! Done with you!

[nameofsam]

Chris this is a terrific series! Keep it up!

[hatch381]

That was a great interview Chris....MAN did I learn a lot. Thanks.