Comments on: The Fed: Out of Control? http://www.nakedcapitalism.com/2007/05/fed-out-of-control.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: SPECTRE of Deflation http://www.nakedcapitalism.com/2007/05/fed-out-of-control.html#comment-76 SPECTRE of Deflation Thu, 10 May 2007 13:15:00 +0000 http://www.nakedcapitalism.com/2007/05/the-fed-out-of-control/#comment-76 The distinction between money and credit is significant. A huge expansion in money supply leads to hyperinflation like the Weimar Republic or Zimbabwe.<br/>* A huge expansion in credit eventually leads to things like the tulip mania implosion, the railroad bust, and the great depression.<br/><br/>These two bullet points are critical in understanding where we are headed. We have high asset inflation because of credit expansion, while money stock is decreasing. We won't be burning bundles of dollars to cook like they did in Germany. The distinction between money and credit is significant. A huge expansion in money supply leads to hyperinflation like the Weimar Republic or Zimbabwe.
* A huge expansion in credit eventually leads to things like the tulip mania implosion, the railroad bust, and the great depression.

These two bullet points are critical in understanding where we are headed. We have high asset inflation because of credit expansion, while money stock is decreasing. We won’t be burning bundles of dollars to cook like they did in Germany.

]]> By: Yves Smith http://www.nakedcapitalism.com/2007/05/fed-out-of-control.html#comment-74 Yves Smith Thu, 10 May 2007 02:34:00 +0000 http://www.nakedcapitalism.com/2007/05/the-fed-out-of-control/#comment-74 Fair point. I've been reading Panzner, who I like, only via Seeking Alpha. Your comment is a reminder to check his blog directly. Fair point. I’ve been reading Panzner, who I like, only via Seeking Alpha. Your comment is a reminder to check his blog directly.

]]> By: Dave Iverson http://www.nakedcapitalism.com/2007/05/fed-out-of-control.html#comment-72 Dave Iverson Wed, 09 May 2007 22:45:00 +0000 http://www.nakedcapitalism.com/2007/05/the-fed-out-of-control/#comment-72 <em>[Shedlock]'s the first sober analyst I've seen to use the word "hyperinflation" as a possible outcome.</em><br/><br/>Another candidate is Michael Panzner. His blog, <a HREF="http://www.financialarmageddon.com/" REL="nofollow">Financial Armageddon</a> is worth a look/link. <br/><br/>Although I can't vouch for his personal life, my guess is that he too is a 'sober analyst'. [Shedlock]’s the first sober analyst I’ve seen to use the word “hyperinflation” as a possible outcome.

Another candidate is Michael Panzner. His blog, Financial Armageddon is worth a look/link.

Although I can’t vouch for his personal life, my guess is that he too is a ’sober analyst’.

]]>