Oldtent Archives 2010

http://goldfuture.files.wordpress.com/2010/01/germany_food.jpg

This is great news! My property taxes are coming down. My cost of living is coming down. Food will be less expensive as will be heating and air conditioning. Retirees and even the gal at the Mcdonalds counter can sing “Happy Times are Here Again”. Who needs Gold?? Just collect fiat and prosper.

Excellent Zero Hedge article on US strategy in Indian Ocean.

….Bill H (and PMF) have it……we are ALL right…we’re having both at once

arch09.goldtent.net/2010/01/12/bill-hfrom-midashyperinflation-and-deflation-both-at-the-same-time/

Goodnight friend.

I’m off for Chinese din din.  BBL

He does make a lot of sense.

However… “why is there no inflation now”  I don’t think this is accurate for many commodities but putting this aside there is always a lag time between the creation of money and the effect it has on the economy.  Perhaps we are just in the calm before the inflationary storm?

I find the part of his article that starts with this snip, and what follows to make a lot of sense:

“Now consider this — almost everything — housing, stocks, commodities, bonds — has declined in terms of gold. That tells us that the forces of deflation are now weighing heavily on the world.

“Let’s take it one step further. Over the last year the US Fed and most other central banks have been flooding the markets with their fiat currencies. The question is — in the face of all this currency creation, why aren’t we seeing all-out inflation? The answer is that the forces of world-wide deflation are more powerful than any inflation that has been created by the central banks.

“In the meantime, a towering mountain of debt has been built. This debt will have to be financed, paid off or reneged on. This mountain of debt acts like a sponge — it absorbs billions of dollars every week and month of the year. Since this debt “eats up” money like a hungry shark, it’s deflationary. And remember, with interest rates currently low, this debt has already been “eating up” money. What happens as interest rates rise? Payment on the sky-high tower of debt will be prohibitive — it will be crushing.” - Richard Russell

p.s. I still lean to the deflation side of the deflation/inflation debate, but I do not have the qualifications to present arguments why I have a gut feeling that we are heading into a deflationary setting. I wish I had a list of defensible arguments as to why I feel that way.

I think it’s an abberation… a hiccup if you will.  He will change his mind later.  At least whichever way it goes… gold will do well.  PM stocks in a deflation?  I dunno.

scroll down to the article:

agoracom.com/ir/ECU/forums/discussion/topics/392466-from-tonight-s-midas-richard-russell/messages/1301549

Looks like Richard Russell has joined the deflation crew.

Oh, I’m busted!

I guess we need to take yet another crack at the definition of inflation. When I took Econ 101 at TAMU….I think even there…..it was solely defined as an increase in the supply of currency. Nothing more….nothing less. It’s hard for me to see deflation with vastly more currency chasing a finite supply of tangible assets.

All the best……..aggie.

..hoisted on my own petards !

…u got mail

Oooops, sorry, please forgive me, heeeeelp getting sucked into the piiiiiit …….

..theres a guy names mcGra..looking for a fight

Off for a walk…..smile

“we are just entering the huge deflationary spiral that will unwind six decades of leverage and inflation. ……….  This will be the great deflation that nobody foresees and nobody understands and nobody has protected themselves against.”

Richard Russell

….wow..after seeing that on CNN…anybody think the next Governmental Appointee will be From Goldman ?

….is this guy Blankfein Public Enemy Number 1 ?…or what ?

….Gods Work…?….maybe he will GET some religion !

…i know I know Not a Religious Board

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