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Investment Analysis Clubs / Value Hounds
|Subject: Re: Lies, damn lies and CPI||Date: 3/25/2013 4:21 PM|
|Author: TMFKMHinson||Number: 14036 of 20304|
"That's the thing. People like Hussman who make the scary predictions that "sound right" (to people like me) keep losing money (or failing to make money with their money) and keep making the scary predictions. He may well be proven right some day, but when?"
You're missing the point... I didn't quote Hussman or even reference his ideas in my post... I pointed to a chart on his website that presents some verifiable facts about the monetary supply in a meaningful way. The fact I took away is that our monetary base is at unprecendented levels, and normalized interest rates will be expensive, and that basically says to me... this probably has significant and long-term implications, I don't know what they are exactly, but it's a more interesting discussion than "what specific number down to the second decimal place is 'inflation'." That seems like a pointless/academic endeavor to me, but others may certainly enjoy discussing it.
Hussman can be right, wrong, alive, or not, and it doesn't change the fact that the Fed is fueling massive asset purchases by creating dollars out of thin air and pushing our monetary base to unprecedented levels. If your savings are in US$ denominated assets or dollars themselves, it probably behooves you to think about that, uncomfortable as it is, and regardless of your opinions of any specific market commentator.
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