Tim Cavanaugh Talks Inflation, QE3 & Spengler at PJTV

Is it time for inflation insanity or deflation doldrums? 

If we lost the last decade, would anybody bother looking for it? 

Will the decline of the west start already? 

At PJTV's The Bottom Line, Reason Senior Editor Tim Cavanaugh discusses monetary madness with host James Poulos. 

Whole interview here (free registration required). 

Comments

[rather]

Register? No way

[Joshua Corning]

What is with all this hand shaking?

Also love the suit Tim.

[GILMORE]

No... no.... nOOOOOOOOOO!! NOT THE BLACK SHIRT AGAIN

[Joshua Corning]

Also peter just wrote about how there will be no QE3...

Does Peter know somehting Tim doesn't?

Does Tim know something Peter doesn't?

http://reason.com/blog/2011/05.....uantitativ

[Hobie Hanson]

Anyone who knows anything knows something Tim doesn't.

[Paul]

Kind of. He wrote that there would probably be no QE2, based on the most minutes from the most recent Fed meeting. He also wrote that they had the same negative feelings on QE2 that they're having on QE3, which means that we could still have QE3.

[rather]

Never mind the QE2, my boat is in dry dock dock timber

[John]

Nothing sadder than a boat out of water.

[TigTii]

That dude just looks corrupt as the day long

http://www.internet-privacy.at.tc

[Hogan Proetto Donna]

yeah ,very good.

[Colin]

Did Cavanaugh become a mobster?

[R C Dean]

The announcement that there will be no QE3 means little more than that further cash printing will be branded differently.

They are trapped. QE was itended as pump priming, to jump start the economy to the point where organic growth would solve the threat of deflation and support demand for Treasuries. It failed.

Actually ceasing liquidty injection at this point will mean that the bond market breaks down, the credit markets lock up, we roll over into a double dip recession, and we could even see a really nasty period of asset deflation combined with inflation in some sectors (those for which there is international demand in sounder currencies, like food, fuel, raw materials, etc.).