Chris on RT's Capital Account today

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Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 3211
Chris on RT's Capital Account today

Chris appeared for an in-depth interview on RT.com's 'Capital Account' this afternoon (he comes on at 3m:45s):

enjoy,

Adam

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Poet
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Posts: 1892
Chris And Deflation?

From prior readings, I know Chris has mentioned an 80/20 ratio, leaning towards inflation/hyperinflation.

But then on this show, he mentioned deflation.

Did I hear that right? Chris mentioned money printing possibly on the order of trillions, but then mentioned deflation as a likely scenario. But when the host asked him to explain, I didn't quite understand it, or maybe she didn't really give him time to explain it.

Can I get some clarification? Is this also part of why gold has gone down below $1,580 per ounce yesterday, which is a new low after hitting the high earlier this year of $1,850?

(Note: Personally my thoughts have been biflation and decline. What we need gets more expensive or becomes unavailable or harder to get due to production declines, product line simplification, business closures. What isn't necessary may get cheaper. Labor gets cheaper due to lack of jobs and competition for jobs, and therefore most of us who sell our labor for an hourly wage or for a monthly salary will see wage stagnation, job loss, reductions - which means less spending power even as the prices of things rise faster.)

Poet

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SailAway
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Posts: 404
Re: Chris And Deflation?
Poet wrote:

From prior readings, I know Chris has mentioned an 80/20 ratio, leaning towards inflation/hyperinflation.

But then on this show, he mentioned deflation.

Did I hear that right? Chris mentioned money printing possibly on the order of trillions, but then mentioned deflation as a likely scenario. But when the host asked him to explain, I didn't quite understand it, or maybe she didn't really give him time to explain it.

I think what Chris is making reference to is that Merkel said Gemany  will not allow money printing, so we could be heading quicly to a hard default in Europe. Is is just political or real? Jim Sinclair this morning on King World News think it's purely political:

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/15_Jim_Sinclair.html

 

 

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docmims
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Even with massive Fed

Even with massive Fed printing, default in europe could lead to massive dollar buying which would lead to transient deflation in the US due to the overvaluing of dollars.  That is why he said we could see some deflation here.

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earthwise
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Exponential growth?

 

It seems that the message is, although low on the curve, is starting up the exponential growth curve. The blog is growing, then the book and now more and more exposure to larger and larger audiences. Not to mention how encouraging it is to have an interviewer understand and try to explain the concept of exponential growth.

Congratulations Dr. Chris.

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cmartenson
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Posts: 5971
Deflation - making sure it doesn't happen here

 My deflation comment is meant to be taken in the context of the view I've held since March that there would be a rout before the next big round of printing.

There are very pronounced deflationary forces at play right now ranging from declining liquidity to debt wipeouts to declinging global growth.  That's the current environment, and those forces will continue to accellerate as long as the Fed, et al., sit on their thumbs and fail to print more.

Will the Fed relent and print more?  I am almost certain that they will.  But first they need a good reason to do so and the Dow at 11.7k does not yet provide the necessary cover.

So the rout I was expecting in the Sept-Oct timeframe has been delayed by a few months, and it's coming for slightly different reasons than I thought, but it seems to be here.  

By the way, the subject line of this post is the title of Bernanke's famous helicopter paper.

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Poet
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Joined: Jan 21 2009
Posts: 1892
The Coming Rout

Thank you, Chris. That explains it better for me.

I now wonder how the euro crisis will play on this. I don't think a lot of people were thinking about that even 3 years ago.

For everyone, here's the link from March of this year.

The Coming Rout
http://www.peakprosperity.com/blog/coming-rout/53869

Poet

cmartenson wrote:

 

 My deflation comment is meant to be taken in the context of the view I've held since March that there would be a rout before the next big round of printing.

There are very pronounced deflationary forces at play right now ranging from declining liquidity to debt wipeouts to declinging global growth.  That's the current environment, and those forces will continue to accellerate as long as the Fed, et al., sit on their thumbs and fail to print more.

Will the Fed relent and print more?  I am almost certain that they will.  But first they need a good reason to do so and the Dow at 11.7k does not yet provide the necessary cover.

So the rout I was expecting in the Sept-Oct timeframe has been delayed by a few months, and it's coming for slightly different reasons than I thought, but it seems to be here.  

By the way, the subject line of this post is the title of Bernanke's famous helicopter paper.

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