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Iowa Student Loans Liquidity – Mish Shedlock's case for deflation


Iowa Student Loans Liquidity – Highest Rated?

Subscribe to our newsletter at Episode 91: GoldMoney’s Andy Duncan speaks to Mike “Mish” Shedlock about the entire global financial situation, but particularly focusing upon the debate between those who believe in deflation of the money and credit supply versus those who believe in inflation. As a believer in the former scenario, Mish argues that many Austrian economists have ignored the role of credit in economies, and that “hyperinflationists” are too US-centric in their analysis. He argues that in the short-term, he sees 2008-style “credit events” as more likely to occur in Japan, China, and Europe. Shedlock also mentions the deflationary impact we can expect from the increasing use of robots in manufacturing, and how the currency wars are affecting the inflation/deflation dynamic.

They discuss the Federal Reserve’s potential treatment of excess reserves, the use of helicopters by Ben Bernanke to stem deflation via bundles of money produced via the Fed’s printing press, and the similarities of the situation between America’s current position and that of Japan 20 years ago. Mish outlines what he would do if he was put in charge at the Fed.

Following on from this, they talk about the recent agreement of the Bank of Japan to follow prime minister Shinzo Abe’s instructions to follow a 2% price inflation target, as well as discussing the financial situation in the eurozone and the UK.

This podcast was recorded on 22 January 2013.

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  1. premiumpunk13
    July 26, 2021 at 7:33 am

    Crude inventories are at the highest levels they have been in decades , peak oil is a joke ! If they were to create robots to replace humans, firms would have the differences between taxes and shipping costs. The way the U.S is looking I think they would keep them in china because it'd still be cheaper

  2. jcrowley1985
    July 26, 2021 at 7:33 am

    It's a win-win

    Deflation means you can buy more
    Inflation means what you already own is worth more.

  3. EugenioRicardoIlde
    July 26, 2021 at 7:33 am

    what a f. troll is he

  4. quadcatfly
    July 26, 2021 at 7:33 am

    He is right. My groceries bill is going down like hell, electricity and gasoline are almost free, taxes and healthcare costs are falling like a rock. It is deflation !! Cash is a king !

  5. dlmaniac
    July 26, 2021 at 7:33 am

    Mish does have a point but he's a little too broad. What's going to happen is that stuff that government wants at a higher price, such as real estates, would continue to struggle. Sutff that government wants at a lower price will surge regardless how it's manipulated. So it boils down a continuous fight between deleveraging and inflation. Eventually inflation will win as that's the only option government has to cover this much debt.

  6. madridisinSpain
    July 26, 2021 at 7:33 am

    better believe nobody rather than nothing

  7. hkrainman
    July 26, 2021 at 7:33 am

    Here's the basic problem with Mish's deflation bet. Mish Shedlock hates China! he continue to underestimate china’s ability to over shadow America’s ability to be top importer of commodities around the world.
    Here’s the question, how can there be deflation, if Chinese Yaun get stronger, much stronger and buys up all the resources in the world.
    Mish is basically betting on a China collapse, he has been very wrong do far on this

  8. Smith
    July 26, 2021 at 7:33 am

    how would a windfall tax on gold work? no one knows what price someone bought gold.

  9. planetpiers
    July 26, 2021 at 7:33 am

    interesting insight when taking into consideration credit and how it affects the hyper-inflation arguement for the short/medium term.

  10. yin ng
    July 26, 2021 at 7:33 am

    He's wrong about little commodities demands because of China (isolation as he said). China had sets an example for other developing/under develop nations worldwide. World Population is expending. Large commodities demand is an ongoing process even China slowdown. China is actually going around the world helping others to build their infrastructures + urbanization

  11. optionsupdate
    July 26, 2021 at 7:33 am

    thanks Ezra Pound was awesome.

  12. EugenioRicardoIlde
    July 26, 2021 at 7:33 am

    He is no good at explanation, which deflation? in poped assets prices? sure, one day all derivatives crap will go to ZERO, that's deflationary alright.

    What will happened to the price of living? It will go through the roof, that is hyperinflationary.

  13. noodles
    July 26, 2021 at 7:33 am

    Kyle Bass put it best when he said we will see prices go up as a result of capital missallocation, fuelled by governments' interventions in the market. So basically food prices go up because there''s a subsidy for growing ethanol crops.

  14. prabudes
    July 26, 2021 at 7:33 am

    Correct. Hyperinflation is a hype in this scenario.

  15. J. Wheaton
    July 26, 2021 at 7:33 am

    Doesn't sound like Shedlock

  16. Carlos Lam
    July 26, 2021 at 7:33 am

    There is deflation in things one owns, such as homes. There is inflation in things we need: food, gasoline, ammo.

  17. Lisa Murphy
    July 26, 2021 at 7:33 am

    Mish has been good on his predictions for gold, but remember that in 2010 he was predicting that the us stock market was headed down dramatically. That was a really bad call and just goes to show that none of these financial analysts can really predict what's going to happen.

  18. cassanoa
    July 26, 2021 at 7:33 am

    the last thing Bernanke had left to do is devalue the American dollar – that's not done yet – this guy is an idiot – he sounds like he loves the FED – there you go – everything is ok and happy days are back again – what a fool

  19. cassanoa
    July 26, 2021 at 7:33 am

    dos this man not realize that the banks are the owners of the FED – the FED works for the banks – this interview has discredited its self

  20. paisiostheologos
    July 26, 2021 at 7:33 am

    My income has not changed much since 2009 and my budget is pretty much the same. Most of the inflation came from the credit expansion from 2000 to 2008. Americans are removing money from the economy (by paying down the debts) faster than the Fed is creating it.

  21. velvet01able
    July 26, 2021 at 7:33 am

    If we were in deflation, you would know it. There would be no debate. Anyone on fixed income would be dancing in the streets. But we are NOT in deflation. We are in stagflation. We have higher costs, for less received and lower wages (or stagnant at best). Enough deflation nonsense already. People aren't bitching about income. They are bitching about MUCH higher costs.

  22. shocka007
    July 26, 2021 at 7:33 am

    Excellent information.

  23. Fone Star
    July 26, 2021 at 7:33 am


    "With usura hath no man a house of good stone
    each block cut smooth and well fitting
    that design might cover their face,
    with usura…"

  24. TheBullionBull
    July 26, 2021 at 7:33 am

    Shedlock: deflation so buy gold
    Schiff: inflation so buy gold

    Well, I guess I need to buy gold, haha.