Interview with Marc Faber (inflationist) and Michael Shedlock (deflationist)

August 4th, 2010

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A few months ago, we found this interview with Marc Faber and Michael Shedlock (aka “Mish”). Faber once said in an interview that he was “100% sure” that the US will fall into hyperinflation. Mish, on the other hand, is a very staunch deflationist (see Are deflationists missing the elephant in the room? Or are they believing in something more sinister?).

What if you put the two together in an interview? Will they clash? Surprisingly not, as you can see…

In particular, pay attention to what Mish said in the final moments of this video.

The takeaway lesson is this: the unfolding train wreck will be something the world has never seen before (as one of our reader, DavidL said). Whatever ‘flation it is, it would not follow the script of the past.

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  • DavidL

    I recently saw a clip of Taleb talking about financial reform, and he said, we don't know what it risky and we have to act in a completely different way then we have been, until that happens the amount of risk in the system in not knowable. He said he wakes up everyday and reminds himself that we don't know and we have to base our decisions on that fact—and he hopes he's wrong about the crash that is coming. I recommend everyone take the time to read The Black Swan from cover to cover–it repeats a lot of things in the learning section of this site, but also sums things up in a very thought provoking way.

  • Castor

    This is a good book, but it could be written better. The author tend to meander too much and it is easy to lose your way.

  • Temjinck

    I am actually on Mish sides for a variety of reasons and I would only point to his numerous articles on why deflation is a more immediate threat than hyperinflation at this time. Ironically though, both Mish and Marc are bullish in gold, but for different reasons.

    Basically, if a quadtrillion worth of dollars were printed but are never released to the public and remain buried in the backyard, would anyone consider it inflationary? From Austrian's perspective, it would be a yes.

    Of course, as the editor had noted in his last comment, we are in uncharted territory and we could still be in for a surprise depending on what those politicians may do. (or capable of doing) I will reserve my opinion until new information arises.