Intel Corp (INTC)

[mas]

Peter Schiff is just sore that his gloom and doom stories of hyper-inflation with the resultant price spike in his beloved Gold did not take place. I have always though he was a clueless idiot and nothing has changed my opinion of him.

Here's the deal about fiat money, there is nothing sacrosanct about its value, it is just a tool whose value at any time is a snapshot of conflicting pressures/requirements in your economy and a Central Bank has the mandate to manage it as it sees fit under its Government instructions. The fact that Japanese have had so much QE without inflation shows that their deflation is structural. In fact I think the current global deflation is structural primarily due to lower energy prices as the global inflation that lasted three decades from the 70s was structural IMO and caused by higher energy prices i.e. Oil.

As long as you don't have abnormal inflation QE is a free ride that everyone can benefit from apart from savers. Obviously once inflation returns that will hit everyone again but even then it will have a side benefit of reducing the value of your debt and QE unwind can also help then to reduce the money circulation dampening the inflation. Deflation is not a completely bad thing if your economy is still growing and money supply is healthful and can be considered a mark of how you are making products fundamentally cheaper than before which is surely a good thing for everyone. Shale Oil/Gas has basically given the world a break from high inflation and we should not be so ungrateful unless you are a doom and gloom Gold Bug like Schiff .