A question for the Econ guys on the board.......

[franklin]

Inflationistas.

The Hussman analysis excludes Bernanke's new tool--paying interest on excess reserves. However, we don't know how it will work, if at all, or if it will bankrupt the Fed (on paper anyway).

With 96% of the variability explained by the curve, it's pretty damn hard to ignore the liquidity preference function. I, for one, will add credit to the notion by converting most or all my cash into c.d.'s or t-bills once rates go higher (a multiplier). To disregard the inflationistas is to disregard anecdotal common sense and all theory built to date. Hussman is making damn good points, as always. (BTW, I've been in the deflation camp for long enough)

 

[sirkickyass]

Say, Mises, and Malthus as corner men is pure genius.

I was beyond thrilled to see them work in references to the pipes and the sluices.

The genius of it, to my mind, was giving Hayek all the best lines. Really captures the allure of free market fundamentalism and you have to watch carefully to see the common problems of the Austrian method which are depicted accurately but more subtly.

 

[The Pearl]

John Hussman has written variations of the same article every week since the mid 90's.

 

[The Pearl]

I was beyond thrilled to see them work in references to the pipes and the sluices.

The genius of it, to my mind, was giving Hayek all the best lines. Really captures the allure of free market fundamentalism and you have to watch carefully to see the common problems of the Austrian method which are depicted accurately but more subtly.

I find this time period in economic history, if viewed objectively, as laying waste to most of the experts and their theories. Once the public gets their butts handed to them when the precious metals roll over and the dollar rebounds, logical people should put the last shovel of dirt on the Austrian grave. The illusion that any government official when put in the hot seat requiring them to make a decision and implement action is anything but a JMK follower should now be fully exposed.

Bernanke has gone from a total idiot who has no idea what he was doing at the bottom of the crisis to another level of idiot because what he did when he didn't know what he was doing is working so well that again he doesn't know what he is doing. This from the same crowd that killed him in 07 for not fighting the hounds of inflation, months away from the swiftest commodity reversal in generations. Of course the public continues the folly moving from tech stocks, to "flip that house", and now to buying gold and silver. And not just gold and silver ETF, but physical gold and silver because you know if you own physical gold and silver, you are much more sophisticated and the ETF schmucks.

But hey, I forgot this time the markets will work differently.

 

[The Pearl]

Of course, not to be last to the party. Barron's online, in two consecutive days has recommended astute investors buy two stocks. Both have gone up about 600% since the March bottom.

Timely advice.

 

[bordelais7]

Bernanke has gone from a total idiot who has no idea what he was doing at the bottom of the crisis to another level of idiot because what he did when he didn't know what he was doing is working so well that again he doesn't know what he is doing.

I...can't...really tell if I agree with this sentence or not. But I sure enjoyed reading it.

 

[sirkickyass]

I find this time period in economic history, if viewed objectively, as laying waste to most of the experts and their theories. Once the public gets their butts handed to them when the precious metals roll over and the dollar rebounds, logical people should put the last shovel of dirt on the Austrian grave. The illusion that any government official when put in the hot seat requiring them to make a decision and implement action is anything but a JMK follower should now be fully exposed.

Bernanke has gone from a total idiot who has no idea what he was doing at the bottom of the crisis to another level of idiot because what he did when he didn't know what he was doing is working so well that again he doesn't know what he is doing. This from the same crowd that killed him in 07 for not fighting the hounds of inflation, months away from the swiftest commodity reversal in generations. Of course the public continues the folly moving from tech stocks, to "flip that house", and now to buying gold and silver. And not just gold and silver ETF, but physical gold and silver because you know if you own physical gold and silver, you are much more sophisticated and the ETF schmucks.

But hey, I forgot this time the markets will work differently.

It's the fire and brimstone. It gets the souls going every time. Even Friedman succumbed to free market fundamentalism in his later years.

But let's get back to the real discussion: That video was ****ing awesome.

 

[The Pearl]

I...can't...really tell if I agree with this sentence or not. But I sure enjoyed reading it.

Trying to get your mind off of RSL

 

[GVC]

from tech stocks, to "flip that house", and now to buying gold and silver

https://www.youtube.com/watch?v=SEDe3AVCqb4

 

[franklin]

It's the fire and brimstone. It gets the souls going every time. Even Friedman succumbed to free market fundamentalism in his later years.

But let's get back to the real discussion: That video was ****ing awesome.

A. I didn't have the luxury of guides, so I'm always unconfident I'm spurting out something that misses the obvious, but my understanding of Friedman has long been that he was essentially post-Keynesian without ever (as in to his death ever) pushing a completely workable system. We ended up with monetarism, but that didn't really hit the spot with him. It was pragmatic. Friedman was very much in agreement with Keynes on the benefits of a government iron from at least the 1950's.

B. I couldn't find the short documentary on round one, but memory says it was by professionals for professionals. They performed live at an econ conference. It's not your usual youtube made for the CNBC is manipulating us all so buy gold crowd. Thus the badassness.

C. I have a page of responses but they'll have to wait sobriety. I know Kicky will be here sooner or later, but you're in question Pearl. Please stick around and add responses. TIA.

 

[The-Joker]

Fixed. Just for you, Ducky. Skip a couple minutes.
https://www.youtube.com/watch?v=GTQnarzmTOc

The Bernake look alike at the end is an interesting twist...

 

[Duck Rodgers]

I find this time period in economic history, if viewed objectively, as laying waste to most of the experts and their theories. Once the public gets their butts handed to them when the precious metals roll over and the dollar rebounds, logical people should put the last shovel of dirt on the Austrian grave. The illusion that any government official when put in the hot seat requiring them to make a decision and implement action is anything but a JMK follower should now be fully exposed.

Bernanke has gone from a total idiot who has no idea what he was doing at the bottom of the crisis to another level of idiot because what he did when he didn't know what he was doing is working so well that again he doesn't know what he is doing. This from the same crowd that killed him in 07 for not fighting the hounds of inflation, months away from the swiftest commodity reversal in generations. Of course the public continues the folly moving from tech stocks, to "flip that house", and now to buying gold and silver. And not just gold and silver ETF, but physical gold and silver because you know if you own physical gold and silver, you are much more sophisticated and the ETF schmucks.

But hey, I forgot this time the markets will work differently.

I finally get you since you pretty much confirmed you're a money manager in another topic. You've had guys calling you saying, "Hey Pearl, why the hell aren't we in gold and silver" for the last decade or so. That can get kind of annoying.

The good news for you is that they are painstakingly trying to bring silver down to earth with increased margin buffers. I don't think Gold is going down anytime soon, but silver could be wild.