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Tag Archives: Deflation

These are the times that try men’s souls.

April 13, 2013

21 Comments

I recently spent some time in a flyover state and had some surprising discussions with people who, despite their extreme views, appeared in every other respect to represent the solid heartland of America. By that I mean they were not rednecks, but rather, enterprising, middle class, church going citizens with strong family values. They included […]

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The Future Of Currencies

October 12, 2012

16 Comments

In an earlier post I wrote about the likelihood of continued market volatility as asset prices veered back and forth between the effects of monetary stimulus and the deflationary forces unleashed by a generational deleveraging event. In this tug-of-war between the forces of inflation (money printing) and deflation (deleveraging) the dollar is the medium through which […]

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The Unintended Consequences Of Human Action

September 20, 2012

6 Comments

With QE3 the Federal Reserve has initiated another massive round of money printing, buying $40 billion worth of mortgage securities while continuing to reinvest its income from the securities  purchased during QE1 and QE2. In addition the Fed has changed the emphasis of its mandate, from targeting price stability to making itself responsible for employment, promising […]

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Platonic Dialogues For Our Times: Part I

June 7, 2012

1 Comment

Inflacionatus: How on earth can you continue to hold on to your deflationary views Deflaticus? The monetary base has exploded, inflation is rising and while the dollar has not fallen over the last 12 months, it has not risen much either, as one would expect during a deflation. Deflaticus: The monetary base may have exploded, […]

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