Stacy Summary: The gripping hyperinflation debate between Rick Ackerman and Gonzalo Lira enters Round 3 (technically it’s round 2, but no round 2 ring girls had silver star in belly button and silver heart around neck):
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Stacy Summary: We interview Nicole ‘Stoneleigh’ Foss about Fukushima and deflation.
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Posted in Max Keiser Video
Tagged cesium 137, deflation, fukushima, nicole foss, On the Edge, stoneleigh
“The biggest danger remains the US housing market, where he said there was the potential for a new shock as more Americans default on home loans as mortgages come up for refinancing.”
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Here is the money supply chart via ShadowStats showing deflation:
ShadowStats’ note on above chart: A downward slope in this growth curve does not necessarily mean that the money supply is dropping. Only if the curve goes below zero does that show money supply having contracted over a full twelve months.
Here is the Consumer Price Inflation chart (ShadowStats’ real CPI line is the blue one); as you can see that is well over 5%:
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Richard Bluestein in now on board to direct/edit this project. The format is for each economist to answer 10 questions supporting their thesis. These will then be cut together into a mashup and posted to YouTube.
Both Steve Keen and Peter Schiff have agreed to participate in this. A bit of a delay – for the next two weeks, Peter is focusing on his senatorial campaign (if you live in CT. I suggest you vote for him).
PirateMyfilm: “Inflationist v. Deflationist - Peter Schiff v. Steve Keen” (EDUEL)
Note: The project is over-subscribed by over 250%. If you can’t reserve shares in this project, you might want to consider Richard’s other PMF project: “The Chicago Way” (CHICA)
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Posted in Headlines
Tagged deflation, inflation, peter schiff, richard bluestein, steve keen
It is my thesis that the inflation, deflation debate is flawed because we no longer have reliable price signals. The overwhelming domination of program trading on various exchanges has fundamentally changed the way prices are created and represented in the economy. All ‘efficient market’ theories are dead. Continue reading
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Posted in Max Keiser Blog
Tagged deflation, gold, hft, inflation, max keiser, nyse, price discovery
Stacy Summary: Yikes. Deflation. Depression. And, you know what comes next. “The stock of money in the US fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6pc”
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| From MaxKeiser.com Images |
Chart from Shadowstats
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Stacy Summary: On the Edge with Revere Award winner, Steve Keen. (By the way, next week’s guest will be Gerald Celente if you have any questions for him).
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Stacy Summary: The Military-Industrial racket is a much easier one it seems than the Finance-Industrial racket. The threat to blow up economy worked once, I don’t get the sense that it would work so easily again. An existential threat from far off countries with a tiny fraction of your own military power works over and over and over and over and over again. And the trillions that have gone missing in the sands of Iraq and the mountains of Afghanistan are just as staggering as the riches lost to Wall Street. But nary a peep. At least with the insane battle against deflation, we know what victory looks like and that is inflation.
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Stacy Summary: These headlines do not suggest a recovery as Geithner claims, nor does it seem the worst is behind us.
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Posted in Headlines
Tagged britain, debt spiral, deflation, gold, japan, marc faber, oecd
Stacy Summary: Surprise! Here is the additional material we shot with Janet Tavakoli. Lots of interesting stuff here. Enjoy!
(For those who missed the first half, here is the On the Edge episode from 02 October)
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Posted in Max Keiser Video, On the Edge
Tagged deflation, gold, inflation, janet tavakoli, max keiser, over the edge, us dollar
Stacy Summary: Good mornin’ y’all. Yes thanks for all the great links in the latest jibber jabber. Here is what I am reading this morning. The second link from Jesse is very interesting. Read it and let me know your thoughts in comments please!
The monetary stimulus of the Fed and the Treasury to help the economy is similar to relief aid sent to a suffering Third World country. It is intercepted and seized by a despotic regime and allocated to its local warlords, with very little going to help the people.
By far this presents the most compelling case for a deflationary episode. As the money that is created flows into financial assets, it is ‘taxed’ by Wall Street which takes a disproportionately large share in the form of fees and bonuses, and what are likely to be extra-legal trading profits.
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Stacy Summary: The Bloomberg headline is the deflationary argument you have been hearing from Steve Keen, Mish, etc.; I have linked to a blog entry by Keen that discusses what this credit contraction means in terms of the flations.
So has the government cavalry ridden to the rescue? If the crisis were one simply of liquidity, the answer would be yes. A government stimulus can overwhelm the impact of a credit crunch, and the innate dynamic of a productive economy can re-assert itself after such a crisis, leading to renewed growth.
But this not merely a crisis of liquidity. It is one of excessive private debt, on a scale that is also unprecedented: the USA is carrying US$41.5 trillion in debt on the back of a US$14 trillion economy, proportionately 70 percent more debt than it had at the start of the Great Depression. In December 2007, the private sector swung from ramping up debt levels as it chased speculative gains on asset markets, to retreating from debt as the asset bubbles burst.
In the space of a year, private debt went from adding US$4 trillion to aggregate demand, to subtracting US$165 billion from it. Private debt had ceased being the economy’s turbocharger and had instead become its flooded engine.
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Stacy Summary: In case you are bored or just curious this Sunday afternoon, I recommend the following inflation/deflation debate held by FinancialSense Newshour. It’s the third hour, listen to both the inflation/deflation debate and then the next segment with Marc Faber. By the way, my own organic fresh produce bill has gone down over 10% (and up to 20% on some items) in the past two or three months. After you listen to it, your comments below!
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Rick Ackerman
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