What so many people get wrong about US deflation threat

Kassz007 · Feb 9, 2011

Quote from Martinghoul:

What, if anything, will you need to see to conclude that the Fed is doing the right thing?

I can already answer this for you. The usual response I receive when I ask this question is

"I want the Fed to do nothing so that everything can reset and we can start growing again."

All the while, completely ignoring the negative implications of the Fed doing nothing.

My apologies to denner and atticus for putting words in your mouth, but from my personal experience, this is the usual response.

Kassz007 · Feb 9, 2011

Quote from ElCubano:

Close shop.

Case in point.

dwpeters · Feb 9, 2011

Quote from ElCubano:

Close shop.

+1.

Since that isn't going to happen, the comment that I think best sums up how this will turn out is:

Anyone who thinks there will be deflation does not understand twenty-first-century banking. There may well be a deflationary collapse later, but before that happens the government will print money until the world runs out of trees. Jim Rogers, Adventure Capitalist.

ElCubano · Feb 9, 2011

Quote from Kassz007:

All the while, completely ignoring the negative implications of the Fed doing nothing.

And we always get this argument from the other side...

Martinghoul · Feb 9, 2011

Quote from ElCubano:
Close shop.

This makes no sense... Why would you want them to close shop if you conclude they're doing the right thing?

As to Jim Rogers's comment, that's plain silly, primarily because there's an obvious counter-example.

ElCubano · Feb 9, 2011

Quote from Martinghoul:

What, if anything, will you need to see to conclude that the Fed is doing the right thing?

I need to see them get the f88k out the way in order to conclude they are doing the right thing...get it

Martinghoul · Feb 9, 2011

Quote from ElCubano:
I need to see them get the f88k out the way in order to conclude they are doing the right thing...get it

Get out the way of what? Be more specific, if you will...

Generally, pls don't feel like you need to answer my question, especially if you have nothing of any substance to say.

ElCubano · Feb 9, 2011

Quote from Martinghoul:

Get out the way of what? Be more specific, if you will...

CLOSE SHOP wasnt specific enough....

Marti, I am definitely not going into a gun fight with a pocket knife, besides I know you are bernanke's boy.

Martinghoul · Feb 9, 2011

Quote from ElCubano:
CLOSE SHOP wasnt specific enough....

Marti, I am definitely not going into a gun fight with a pocket knife, besides I know you are bernanke's boy.

It was very specific, but uninteresting and not very logical... It's all good, I don't mind. Apologize for peevish response, it's been a long day.

atticus · Feb 9, 2011

Quote from Martinghoul:

One question for you, denner (and maybe atticus), if you're so inclined.

What, if anything, will you need to see to conclude that the Fed is doing the right thing?

I realize the problem is too big to float the Ts to the public, but I do take issue with buying the top in every market in which they choose to manip. For once I'd like to hear they're buying tankers of crude because the NSA has tapped Centaurus' OC3. Japan, USA, and the Swiss, as you previously mentioned, are all part of the microcephalic cabal. These taxpayer investments are not going to be held to maturity, so it's analogous to Pablo Escobar sitting in a mountain hideout and burning bricks of 100s to stay warm.

If you're not buying 30s, then why should we be forced to? I like to get kissed when I get f*cked. Being coerced to buy Treasuries doesn't sit well, and not simply because I am unaware of the vig that GS, et al, are charging.