An Austrian school eonomist says what I’m been saying for months, while others cried we are going into hyperinflation because the Fed is printing money.   I’ve been saying NO, NO we are are in a deflationary cycle because no matter how much money the Fed prints if the banks don’t lend it there is no inflation.  Now Mish Shedlock (who I seldon agree with) is saying the same thing (a little late) but finally right.

Explore posts in the same categories: deflation, inflation

One Comment on “I’M SCARED NOW”

  1. Junior Says:

    I read an analysis recently that may have a partial answer to the inflation/deflation conundrum. Instead of creating the loans, the banksters are simply blowing up another equity bubble in a last ditch attempt to raise the value of their toxic assets. The inflation that would have resulted if they’d pumped up the money supply is instead pumping up the bubble. When the bubbles go, there’s nothing left to pump it back up, and we all go down.

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