Comment: Joechip, what do you think of Mish's analysis...

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Joechip, what do you think of Mish's analysis...

on deflation (he defines it as a net contraction of money and credit)?

He believes we are currently experiencing deflation because bank credit is being destroyed faster than the new AMB reserves are going thru the fractional-reserve multiplier process.

I haven't seen GN talk too much about the destruction of bank credit. But, I have seen him say that deflation is highly unlikely (in the future)...but what about right now!? Mish is saying that it is occurring NOW.

I wonder if he thinks if that when the new AMB reserves get "rolling" they will vastly outpace any destruction of bank credit?