Replies to post #142797 on 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 ;-).

[mmoy]

If you're just talking about Japan, perhaps it's their immigration policy that requires some work.

This morning, we got a blowout jobs report which gives the Fed a green light to raise in December. They could let the bonds that they bought just mature to normalize but I think that they're going to roll them over to ensure enough liquidity.

Are there problems? Of course. Could I cherry-pick stats and make things look bad? Of course. Could I cherry-pick stats and make them look good? Yes again. We had a crises in 2008 and we came out of it and things are not so bad now. Are they great? Not for most. But I'd say that they're better than when we started.

The dollar is going to get stronger as we're tightening and the rest of the world is loosening. But they will come out of their problems eventually and start tightening and then maybe our currency will come down so that our companies can more easily export.

The big guys - prognosticators, fund manager, etc. often complain when the market doesn't go their way. Their job is to make money for their client more than it is to look good predicting the future. In the absence of good returns, it's only natural to look for someone else to blame.