bullionbullscanada.com / Jeff Nielson / Thursday, 09 January 2014 13:19
As we begin 2014; it seems incredible to me that we still have what is known as “an inflation/deflation debate” raging. But a debate which was merely frustrating five years ago is now absurd; because it is founded on an entirely false paradigm.
What is logically implied in this “debate” is that spiraling inflation or crushing deflation are alternative scenarios; when, in fact, it has been patently obvious for many years that these two forms of economic cataclysm not only can be but must be concurrent (if not simultaneous) scenarios.
Here I can claim no personal credit, as others saw the degeneration in the West into literal “Ponzi economies” sooner than myself. Darryl Schoon (for one) recently noted his own previous work in this area, and he, in turn, credited Bill Bonner with reaching this conclusion earlier than himself, going all the way back to 2006.
Even beyond this; there has been the work of John Williams, the eminent producer/creator of Shadowstats.com. It is Mr. Williams who first made the quantum leap in analysis in noting as our debt-saturated economies crumbled towards collapse – and fiat money-printing increased exponentially as a result – that “inflation” and “deflation” were not competing scenarios. He coined the term “hyperinflationary depression”, one which I subsequently adopted in my own work.
As we careen into a Greater Depression with nothing but “the Great Depression” to guide us as a template; what caused John Williams (alone among all analysts) to realize that this time it is different? Much like we could classify the fictional genius of Sherlock Holmes as “mere observation”; we could similarly abbreviate Williams’ brilliance as “mere arithmetic”.