Deflation vs. Inflation: Mish vs. Dr. Doom
Mar/100
A tech ticker video with a subject that matters:
Which is the greater threat, inflation or deflation?
In Marc Faber and Michael “Mish” Shedlock, we found two market watchers ready (and able) to champion both sides of this great debate.
Shedlock, an investment advisor with SitkaPacific Capital and author of the economics blog, MISH’S Global Economic Trend Analysis, made the case for deflation: Credit is contracting, despite Ben Bernanke’s best efforts to flood the financial system with liquidity…
But Shedlock is missing one critical factor says Faber, publisher of the Gloom, Boom and Doom Report: “When the economy’s bad, governments pile up these fiscal deficits and they print money” to offset the deleveraging of the private sector, he says. “They’re going to print and print and print.”
If the economy sours again and especially if deflationary forces take hold, we’ll have “even more stimulus packages and even more printing,” Faber says. “That will bankrupt western governments – not just in the U.S. but everywhere.”
Full article & video here:
http://finance.yahoo.com/tech-ticker/the-great-%22inflation-…
Read more…
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