Maybe we'll all look back in 2050 and marvel how Mike Maloney predicted things. Until then the only wealth transfer is from his customers' pockets to his.
Think I disagree with mike about this one. Only need one reason against deflation. Who controls the world - the 0.01% Who already owns all the assets of the world - the 0.01% Who stands to lose the most in massive deflation - the 0.01%
Strange how Baloney's editing team didn't include Harry Dents views on the price of Gold/Silver hitting the floor and only showed Dent nodding his head agreeing with Mike.
You know what gets me... He says deflation is coming... well should he have told everyone to sell metals and then buy back when it's cheaper? Hahaha... I like Mike but he's a salesman and a pumper, good product though just at the right price.
Harry Dent vs Mike Maloney - Why is there a gap in their thinking? They seems to agree in everything except, as Harry Dent puts it, "The gold bugs get everything right except they don't get how fast this money can disappear. Over $100 Trillion in Wealth Will Disappear" - Harry Dent http://usawatchdog.com/over-100-trillion-in-wealth-will-disappear-harry-dent/ According to Harry Dent we are having a deflation, this means if you are on a fixed income such as a government employee, pensioner, or just able to keep your job then your purchasing power is going up, each month you can buy more stuff then the month before, that's most of us, the general population, but especially lower than average income people. If you have worked in the past and deferred spending that past income in favor of investing for the future then you are going to be part of the $100 Trillion disappearing act, that stuff you were going to buy now goes instead to fixed and low income people. What happens in the next serious event? Both these groups can't buy the same stuff. Will the fixed income earners, that's most of us, actually be able to buy more stuff than before? Will the people facing loss of $100 Trillion simply stop buying stuff and let their paper disappear day after day. Or will they continue buying that stuff they are used to buying? Both these groups can't buy the same stuff. That means prices will have to rise until this imbalance is rectified, the equilibrium point is a hyperinflation. Thanks Mike for this insight, you are not full of Baloney. Is this a Big Gap in Understanding that Weakens the Deflationist Argument? "But no matter what quantity of financial assets are wiped out, the cash in the system will remain. And the obligations for more cash printing will remain. And that's all the cash it will take to spark the most amazing hyperinflation the world has ever seen, as the fear turns from 'running out of dollars' to 'running out of food' in the wake of a devastating financial collapse."fofoa
Depends what it means by 'cash'. Physical cash I would think yes. But cash in the bank can certainly disappear.
I've got a question for Harry Dent who keeps knocking the 'gold bugs'. Did the price of gold go down during the great deflation of the great depression? Or did it get confiscated and revalued upwards?
Even cash in the bank will be safe, it's federally insured up to $250k per account, even if the bank goes belly up the government will just cut you a cheque. The money disappearing from the system that he's talking about is the money created through financial instruments and the writing down of debt.
They don't have national banks that can just print money, it's no sweat off the brow of the RBA to print a little money.
