Inflating or Deflating?

[LibertyEagle]

Gary North says the FED is deflating.
"Bernanke Has Snookered Us All"
http://www.lewrockwell.com/north/north568.html


Murray Sabrin says the FED is inflating.
"Bernanke and the panic button"
http://blog.nj.com/njv_murray_sabrin/2007/09/bernanke_panics_opens_up_the_m.html


Which is correct? I always believed... inflating, but North makes some good points, does he not?

[Johnnybags]

Gary North says the FED is deflating.
"Bernanke Has Snookered Us All"
http://www.lewrockwell.com/north/north568.html


Murray Sabrin says the FED is inflating.
"Bernanke and the panic button"
http://blog.nj.com/njv_murray_sabrin/2007/09/bernanke_panics_opens_up_the_m.html


Which is correct? I always believed... inflating, but North makes some good points, does he not?

Like Larry Kudlow says the inflation numbers are overstated! Sure? Please, if the FED wished to deflate they would have let the market work itself out a couple thousand points lower, not spend 100's of billions in liquidity and cut rates. Its inflation til someone hangs the crooks. Fastest way to NAU.

[LibertyEagle]

Like Larry Kudlow says the inflation numbers are overstated! Sure? Please, if the FED wished to deflate they would have let the market work itself out a couple thousand points lower, not spend 100's of billions in liquidity and cut rates. Its inflation til someone hangs the crooks. Fastest way to NAU.

Did you read and check out what North said?

[Johnnybags]

Did you read and check out what North said?

Not being ignorant but when its raining outside I need noone to tell me its not. I looked at your question which was which way they were going and its inflation. Its the only reason that they can claim the economy is growing.

[briatx]

I recommend Mish on this subject who has been predicting Deflation for a while now.

http://globaleconomicanalysis.blogspot.com/

I think his theory is that the Fed will try to inflate, but will fail. The Fed will not hyperinflate as this will put them out of a job.

[Dustancostine]

That sounds like big time inflation to me. If stocks, real estate and the dollar are losing value because everyone is using all of their energy/production to procure food and oil that is bad, really bad.

[Dustancostine]

How much is the nickel currently worth in material?

[Johnnybags]

How much is the nickel currently worth in material?

recently but at one point Barney Frank was complaining because with material cost and labor and transport it was over a dime? It had .08 in material a few months back, it has dropped since then. At any rate, within a few short years if the FED stays on its current course they will make em out of tin. Its illegal to melt but you do have buying power gauranteed and collectability as well. Poor mans gold. Subsidized by Uncle Sam.

[Dustancostine]

What is the law on melting?

I also heard that the penny has 2cents worth of zinc in it, any truth to this?

[Tin_Foil_Hat]

Inflation, deflation, stagflation, recession...

Everything is so messed up any more. Call it whatever you want. All I know is that it isn't good.

Round and around and around we go
where the world's headed nobody knows
And the band played on....

[Johnnybags]

How much is the nickel currently worth in material?

I am rounding, but it takes about 91 nickels to make a pound of metal. Of that 25 percent is nickel the rest copper. 4.55 worth of face value nickels contains
6.40(rounded or so metal content). And thats after nickel went from the 20's back to 15.00 or so per lb. Forget the melting or exporting, its illegal. All I know is if someone was selling me gold or silver at a 40 percent discount I'd buy it. Do not run the banks now, please, just save em over time, get a dime back, ask for two nickels.

[Dustancostine]

I am rounding, but it takes about 91 nickels to make a pound of metal. Of that 25 percent is nickel the rest copper. 4.55 worth of face value nickels contains
6.40(rounded or so metal content). And thats after nickel went from the 20's back to 15.00 or so per lb. Forget the melting or exporting, its illegal. All I know is if someone was selling me gold or silver at a 40 percent discount I'd buy it. Do not run the banks now, please, just save em over time, get a dime back, ask for two nickels.

I own several retail locations, and put change orders in every single diay. I can obtain nickels relatively easily and with little suspicion......Ops there went the suspicion but at least I can get them easily.

[Johnnybags]

I own several retail locations, and put change orders in every single diay. I can obtain nickels relatively easily and with little suspicion......Ops there went the suspicion but at least I can get them easily.

Any time you get a box of 50 rolls(uncirculated 2007's) 100.00 face I'll give you 110.00. Ship it for 10.00 and I am in. You made 10.00 for nothing. Wanna make 200.00, save me 20 boxes of new ones. Sold.

[fsk]

Someone posted this link in another thread.

http://www.coinflation.com/

[Mesogen]

Stagflation.

[jonahtrainer]

Gary North says the FED is deflating.
"Bernanke Has Snookered Us All"
http://www.lewrockwell.com/north/north568.html


Murray Sabrin says the FED is inflating.
"Bernanke and the panic button"
http://blog.nj.com/njv_murray_sabrin/2007/09/bernanke_panics_opens_up_the_m.html


Which is correct? I always believed... inflating, but North makes some good points, does he not?

It is both. Yes, that is really, really bad.

[jonahtrainer]

Forget the melting or exporting, its illegal.

The regulation is probably UnConstitutional though. Would be expensive to fight though and probably eat your profit margin.

[fsk]

If you have your own minting/smelting operation, you probably could melt down US coins and sell them without getting caught.

Has anyone tried operating their own mint? How much effort is required to melt and mint coins?

[Manible]

Gary North says the FED is deflating.
"Bernanke Has Snookered Us All"
http://www.lewrockwell.com/north/north568.html


Murray Sabrin says the FED is inflating.
"Bernanke and the panic button"
http://blog.nj.com/njv_murray_sabrin/2007/09/bernanke_panics_opens_up_the_m.html


Which is correct? I always believed... inflating, but North makes some good points, does he not?

If we deflate the currency everyone you know will be fucked. Take out a mortgage to buy your home, soon what you owe doubles in value as you earn less and the money that you owe becomes worth more.

[Hook]

If we deflate the currency everyone you know will be fucked. Take out a mortgage to buy your home, soon what you owe doubles in value as you earn less and the money that you owe becomes worth more.

Not if the deflation happens slowly over time. If everyone understands that is what is going to happen, then interest rates will be lower to compensate for the decreasing value of houses, since those kinds of loans will be the only ones people will buy.
Also, since people's wages always lag the economy, they will have their wages lowered after prices go down, and therefore gain the benefit of deflation. Sort of the reverse of how wages are always on the loosing end of inflation.