Wednesday, November 26, 2008
Jesse on Inflation and Deflation
Jesse at Jesse's Cafe Americain has a 12 November 2008 post on Inflationistas and Deflationistas, link: http://jessescrossroadscafe.blogspot.com/2008/11/digression-on-inflation-and-deflation.html.
I'll stick my 78 (2-1913) cents in! I am an unapologetic hard core "Inflationista". Could I be induced to switch camps? Yes, once: Citigroup, Bank of America, Goldman Sachs and Morgan Stanley all go into Chapter 7 and no sooner. And maybe not even then. As it is written, "I returned and saw under the sun that--The race is not to the swift, Nor the battle to the strong, Nor bread to the wise, Nor riches to men of understanding, Nor favor to men of skill; But time and chance happen to them all", Ecclesiastes, 9:11 (NKJV). Now I'll add my spin: All true, but that's how the smart money bets. Until the US returns to the gold standard, I see inflation ahead.
I recently stumbled upon an article first published in 1970, which I read in about 1982, that made its way to the web, "The Nightmare German Inflation", link: http://www.usagold.com/germannightmare.html. Anyone who is seriously interested in the inflation-deflation debate should read this.