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Peter called the mess were in years ago <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/2I0QN-FYkpw&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/2I0QN-FYkpw&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
I agree with Schiff on one point: Why on earth are the guys that ridiculed him over the housing bubble now still on more on bubblevision than him? They're just as bad a broken clock as Schiff himself. May/June 2008 (just from the top of my head): Kudlow: "Don, my friend... you gotta help me out here? Is Peter right, are we in for a deep recession here?" Luskin: "Of course not. Larry, it's very simple. If there ever was a recession, it's already behind us. You have to buy with both hands right here. And you know what has always worked in the aftermath of a panic [the March 2008 Bear Stearns "bottom"]? You buy the trash that others were forced to dump. And you do it just like they did: you buy it with leverage for pennies on the dollar!"
Makloda, has the recent weakness in the $ and the accompanied strength in the commodity currencies and the commodities themself changed your view on the deflationary scenario in any way? Cheers.
No of course not. Global deflation/inflation risks are not solely influenced by the USD or commodities. They are two out of many variables IMO. The CRB commodity spot index dropped 40% from 1980 to 2000. The US Dollar Index bottomed at 82 in 1979/80, hit 75 in 1992 and stood at 100 in 2000. Yet the CPI inflation index doubled in the same timeframe. The correlations are spurious at best.