Wikinvest Wire

Jim Kuntsler sees inflation

Tuesday, October 21, 2008

Well, it's a little bit more complicated than that. It's better if he explains:

To switch metaphors, let's say that we are witnessing the two stages of a tsunami. The current disappearance of wealth in the form of debts repudiated, bets welshed on, contracts canceled, and Lehman Brothers-style sob stories played out is like the withdrawal of the sea. The poor curious little monkey-humans stand on the beach transfixed by the strangeness of the event as the water recedes and the sea floor is exposed and all kinds of exotic creatures are seen thrashing in the mud, while the skeletons of historic wrecks are exposed to view, and a great stench of organic decay wafts toward the strand.

Then comes the second stage, the tidal wave itself -- which in this case will be horrific monetary inflation -- roaring back over the mud flats toward the land mass, crashing over the beach, and ripping apart all the hotels and houses and infrastructure there while it drowns the poor curious monkey-humans who were too enthralled by the weird spectacle to make for higher ground. The killer tidal wave washes away all the things they have labored to build for decades, all their poignant little effects and chattels, and the survivors are left keening amidst the wreckage as the sea once again returns to normal in its eternal cradle.
Jim's new book World Made by Hand is highly recommended.

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Anonymous said...

Jim is a bright and likable guy, but that doesn't stop him from being a little bit of a crazy doomer as well.

... ok, scratch "crazy doomer" and make it "pessimist" if you must.

Anonymous said...

His training as a theater major and former mental hospital patient comes in well when writing about interesting events.

Search his archives. Both of those items are there.

KeithK said...

He trained as a former mental hospital patient? I hope he never has to use this training.

Anonymous said...

Normaly we are in a shape of deflation not inflation.
For instance housing is shrinking as the stock market.

When the private debt is bigger than pulbic debt it will be deflation.

May be if the Adminstration choose to nationalise debt (auto industry, housing and so on...) then it will be inflation.

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