Meet Morton’s Fork

Ambrose Evans-Pritchard writes to me in email:

We are in a very dangerous situation. But where does the danger lie, in ice or fire? I fear ice — Dante’s 9th Circle of Hell. That is deflation if the central banks misjudge what is before them, and overreact.

Most fear the fire of inflation. It is a lively debate.

This is Morton’s Fork:

Inflation: Prices go up. Unemployment rises. Living standards go down.

Deflation: Prices collapse. Unemployment skyrockets. Living standards go down.

I’m still awaiting the Unknown Event.

A major Western city destroyed by catastrophic earthquake. (No, the world could survive that.)

An audacious terrorist attack. (No, I doubt that.)

Factor X.

While everyone is busy scrutinizing the money, I still wonder about the world that money exists in.

Whatever X is, it has to be of such magnitude that it literally changes everything.

Then again, it could be a lot of little things happening all at once.

Meet metastability.

About these ads
Explore posts in the same categories: C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Scams, C.O.A.T. - Self-Defense, Depression 2.0

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Follow

Get every new post delivered to your Inbox.

%d bloggers like this: