Deflationista extraordinaire Mike Shedlock (aka Mish) has scrambled together an attack piece on Peter Schiff. The article boils down to his same old tired rant about how prices are currently falling and how that proves his ridiculous hypothesis that inflation won’t happen.
Mish fails to realize that 1) not all prices are currently falling and most importantly 2) inflation is an increase in money supply, price increases are a result. Just because price increases have yet to materialize (it takes time), Mish blows a wad and tells the world he is a genius. It is rather bizarre.
As Michael S. Rozeff recently said:
These price increases are not going to be immediate. There are lags. There is no smooth or mechanical relation between today’s money growth and today’s consumer prices. These things take time. General price level increases depend on both the growth in money supply in past years and on whether that growth is sustained over many years. The Obama administration and the Fed have both told us that they intend to sustain their stimulus for years to come. Add that to the fact that the existing rate of growth of the monetary base already is at a rate that is typical of a banana or coconut republic. Similar results are highly likely.
Peter Schiff (and many others) will be proven correct, again, once hyperinflation arrives in the near future.
See also: Big Inflation Coming
Update: Bill Anderson debunks another attack on Schiff here.
Update2: Schiff’s response here.