CNBC Europe Squawkbox - Hugh Hendry vs Liam Halligan

Highlights of entertaining exchange between Hugh Hendry & Liam Halligan re. 'Will Quantitative Easing Work?' CNBC Europe Squawkbox 11.03.09. All Rights Reserved NBC Universal.

Category:

News & Politics

Tags:

• CNBC
• Europe
• Squawkbox
• Economy
• Quantitative
• Easing
• Hugh
• Hendry
• Liam
• Halligan

[stuartfanning]

Great post!

CNBC London are using this argument in promos for Squawk Box Europe now.

[NewzTube]

oh cool thanks for that! sure was firey!

[KLguy133]

We need more of this , HH vs manduca and other dickheads .

[pancilobak]

I can not be certain what s gonna happen, however there is a possibility that deflation may happen in asset prices while inflation may happen in basic necessities.

[Roberpc1]

@nayemkabir was he?

[nayemkabir]

Liam was right.

[Myndir]

@ulysseinvest I don't watch Fox.

I agree with Ron Paul and ShadowStatsdotcom that M3 is the most important measure of the money supply.

[ulysseinvest]

@Myndir

I think you may be confusing "inflation" with "price index" - you should stop getting your financial education from FOX and open a real book. The "price index" (impact of money supply on prices) is obviously dropping. The "inflation" (increase of the money supply) is obviously increasing, unless you allow the government to fool you with M2 and other fractional reserve tainted meaningless numbers.

Follow the white rabbit - in our case, M0 - and take the red pill.

[Myndir]

@ulysseinvest You too. I think the near-term outlook is still pretty deflationary, unless real GDP growth slows down, because the money supply still suggests slow nominal GDP growth. But the uncertainty and the strong possibility of higher inflation in the US down the line (and already in the UK) suggests that inflation hedging is still where it's at.

[ulysseinvest]

@Myndir,

Give it time, give it time, my friend. Money printed is money printed. Short cut your lessons and go to John Law and other past events. Give it time. And I have not included the upcoming QEs.

Good luck with all your investments.

[Myndir]

And, of course, quantitative easing got Britain out out recession, without imposing even more of the horrific debt involved in Brown's failed fiscal policy.

Students of Black Wednesday, the 1981 budget, the 1931 devaluation, the 1933 US programme, and basically anyone who actually has studied monetary theory, was not surprised. Perhaps that's the 200 years of policy experience to which Liam Halligan refers.

[Myndir]

@ulysseinvest How's that hyperinflation going?

Treating all the money supply as equal is a classic Freshman error. If you're printing interest-bearing money (i.e. money with IOR) then you don't get the hot money effect of the quantity theory. Very basic stuff.

[eatandtravel]

@flameblitz

Hyper inflation aint going to happen.

[eatandtravel]

@pancilobak

We will see inflation in essential goods like oil and food because of global demand. The world's population is increasing.