Pretty stark stuff from Martin Armstrong:
The deflationists are missing a few key points:
1. Megadeflation may occur when $quadrillions are erased in the inevitable credit and derivatives meltdown if the central banks don't just digitally 'print' $quadrillions.
2. If Megadeflation occurs, yippee, a bunch of stuff gets a lot cheaper for a very limited amount of time before the shelves are bare, as a rather large % of businesses are going to go under in the credit drought. No credit, no assets, no wages, no workers, no cashflow, no business. Then the hyperinflation sets in.
The stackers who get all riled up when Harvey Dent or someone says, "Gold is going to $300!" are also missing the point. In that scenario, Au @ $300 might represent more purchasing power than the current Au @ $1200. These things are all relative. And $300 gold is going to dry up in a hurry just like everything else will.
And the Keynesians all need to be beaten with fiery rattlesnakes. QE might have given the economy a temporary kick if they had said to the populace, " Hey guys, NO TAXES for the next 12 months! Don't worry, we'll just print what we would have stolen from you!" - instead of printing $trillions and giving it just to the bankers.
There's no question that the lunatics are running the asylum, but I can't decide whether they're driven predominantly by malice, or stupidity. Even idiots occasionally get something right.
