Dr. Krugman,(htAsh Navabi
As long as you insist on calling out Peter Schiff, either overtly (as you did today) or by innuendo (as you have in the past), perhaps you, or more realistically the readers of your blog, might be interested in his reply. Peter never said that hyperinflation would happen in 2009 or 2010. He simply says that the current policy course, and certainly the more aggressive course that you recommend, will ultimately result in hyperinflation. When that happens depends on decisions made in Beijing and Tokyo that Peter has no capacity to predict. In the meantime, he's holding gold, which is working out well. How's that Keynesian stimulus working for you? ....I know, not large enough.
Here's a thought, why not respond to Peter's many attempts to engage you in a debate. If Peter, and the Austrians, are the crackpots that you regard them to be, how easy would it be do destroy their arguments in the light of day. Why conjur a straw man, and have a mock debate, when the real person would gladly engage in a polite discussion? Please take this occaision to to accept Peter's invitation. Have your people call me at Euro Pacific Capital, and I'll set up the details. If you don't want to leave the islands, he'll come down there.
Regards,
Andrew Schiff
Tuesday, October 5, 2010
The Schiff Challenge to Paul Krugman
In a recent post, Paul Krugman dismissively attacks the warnings by Peter Schiff on hyper-inflation. Peter's brother Andrew, responds to Krugman in a comment to the post:
Subscribe to:
Post Comments (Atom)
If the stated value, of “Federal” Reserve notes, declines enough with respect to copper and nickel, the 1946-2010 U.S. Mint nickels, composed of cupronickel alloy, could become somewhat rare in mass circulation.
ReplyDeleteThe October 5th metal value of these nickels is “$0.0612951” or 122.59% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” at Coinflation.com.
You can tell Krugman feels most threatened by the Austrians in general and Schiff in particular. You can tell by the way he acts as if they aren't even worth engaging. His dismissiveness (is that a word?) is directly proportionate to his fear. He will never debate Schiff, because that would be the end of Krugman. Schiff would wipe the floor with him and it would be all over the internet. Why risk it? It's safer at his NY Times blog, and on the Sunday TV shows. Krugman is a coward, in addition to being a shill for power.
ReplyDeleteInflation depends upon market expectations of permanent increases in monetary base. If the Fed pumps in trillions of new money but hints that it'll be taken out in a couple months, and (most importantly) the market BELIEVES him, almost no inflation will result. Austrians need to incorporate ratex into their models perhaps in a realistic way (if not the omniscient Chicago way)
ReplyDelete