The Contrarian Investor is also struck by the elasticity of fiat money, and how this vitiates attempts to make fair comparisons and store wealth. Gold for the long term, he thinks.
In the short term, we have this contest between credit contraction and currency expansion. I'm getting the feeling it'll be the first followed by the second, which is what Michael Panzner predicts in "Financial Armageddon".
5 comments:
So at what point do you shift from currency to commodities? Seems to me you need to be privy to CB thinking, via, for example, FOMC reports.
I'd be interested in your thoughts on Denninger's piece about the Reset.
Hi James
1. I guess one would buy in on a significant dip. If one had money to spare/risk!
2. If that's today's KD piece, I haven't looked at it yet, shall do so.
3. Have looked, assume you mean the "Recession of 2008" piece. KD is of the view that you can't stimulate demand once the credit contraction is on full steam ahead (or should that be astern?).
Michael Panzner's piece yesterday says the same thing, drawing a comparison with Japan's prolonged deflation, and Panzner quotes and comments today on an article that says recession is here now. Business people I speak to confirm anecdotally that things are slowing down and lenders are getting reluctant; the briskest business I know is one that moves indutrial machinery abroad, they've had a great year - but then so would Pickfords if everybody sold their family treasures.
4. Sorry I see you mean the 3 Dec piece; I commented here on Dec 4:
http://theylaughedatnoah.blogspot.com/2007/12/end-of-usury.html
Post a Comment