He falls for effects (a rise in money-multiplier checkbook credit money) instead of causes (reduction in interbank lending rate, reduction in reserve requirement ratio) when he spouts his false believes about what inflation is.

Likewise, he errs about deflation in the exact opposite way.

Of course, everyone should know that inflation (decrease in interbank lending rate, decrease in reserve requirement ratio) and deflation (increase in interbank lending rate, increase in reserve requirement ratio) are acts undertaken by the Federal Reserve to either expand or compress the economy.

Mish rants never ending over his false belief that we’re in deflation.

Of course, were not. We’re experiencing a massive stoppage of growth in new consumer credit.

Yet, after a short-term fall in prices for 2008 as reported by the U.S. Government , PPI prices are on the rise owing to the price of rented cash (i.e., debt , i.e., credit).

The Shadowstats guy says true CPI has not stopped rising.

Schiff seems to be right about China and “decoupling” as evidenced by the Shanghai Composite Index.

According to Bloomberg, the Shanghai Composite Index, the world’s best-performing benchmark, has seen a 24% surge year-to-date.

Marc Faber believes the SCI could rally as much as 15% before declining .

What Mish does well is blog. He cuts and pastes storiees from other media and critiques them for their fallacies.

However, a literary critic does not make someone well versed in money and economics, the science of exchange of the right to claim one thing for another.

At night, in winter, I slept in a feather bed and kept my school clothes under the pillow so they would be warm and I washed with a bowl and pitcher. Germany, incidentally, is one of the top nations on earth now.

People think the Chinese are very contemptible because they live harsher lives than we do. This is, as you point out, very silly. The Chinese work hard, play hard and think hard. They are very, very dynamic people. My daughter married a man whose parents came from mainland China. Her husband is wonderful and works so hard, we have to restrain him for his own health and happiness!

He has no debts and saves money like crazy and my daughter loves this. Her previous love was a spender who left her deep in debt!

Awesome piece. I learned a lot.

Only one major disagreement. LeBron James is going to the Knicks.