Saturday, December 22, 2007
IN, not DE
Peter Schiff argues the opposite way to Karl Denninger, pointing to the large amounts of US currency held abroad. In paper-money terms, he foresees continuing consumer price inflation, faster than for the assets you hold, so you're going to get poorer. If assets also inflate, we're into hyperinflation. Reasoning this way, he is, of course, a gold supporter.
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2 comments:
I dare say that we'll get both IN and DE, but in which order?
Lets say we start with a bit of stagflation (entering now) turning into deflation. Governments try to inflate us out of it, but that (i) doesn't work, leaving us with Japan-like probs, OR (ii) works only too well, giving us hyperinflation.
Scary days.
Thanks, Dearieme - in response, I've stuck my neck out in the next post above.
Merry Christmas!
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