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More About: Economy - Economics USA

Screw the Schiff Vs. Shedlock smackdown, we know better.

A lot of us have been following the between economic scholars, and now we have two distinct schools we're learning to call the "inflationists" and the "deflationists". And I might have been among the first to be openly hostile, so I'll admit that I'm the pot calling the kettle black. I'd only make the offering that nobody takes me as an economist nor should anyone take me all that seriously. But I did refer to Mish et al in one article as "deflationary geniuses" and I did take the side of the inflationists (i.e. Austrian economic theorists).

Now just from my limited observations, Mish's present position seems pretty sound. If I wasn't 100% vested I wouldn't have waited to call him for the past two years. Call like on the phone, not call in the sense of arguing with the dude. And as lonely as he purports to feel at this time, he being all high ranked in Time Magazine (puke) top whatever awards, he wasn't the only voice of the deflationist camp, he's just a dang good one.

One thing this has helped me to do is refine or clarify my own investment objectives. My metal investment started with coins my grandfather gave me. When Grandfather died, he passed a share to my father which I made an offer on and won. And I've added to it. And now it's a source of insurance to a fourth generation. To me, it's more than metal, it's a promise. But that's just me personally. I'm not angry at Peter Schiff or anyone else that urged us to buy metal, get out of debt and start growing gardens. And I realize I could have cashed out of some metal last time it was like this and done a "Mishian" thing, but I'm a money earner. In other words, I work for a living. I'm a producer. It suits my character, it's work I like doing. Shedlock and Schiff are busy doing what they like doing.

Maybe some of the best investment advice is find something that gets you out of bed in the morning and you can't stop yourself from doing. I don't have to be a genius to predict this one. Here's my open challenge to the younger Mr. Schiff and Shedlock:

Answer this question honestly. This thing you do, is there any thing you really like doing more? In other words, can you NOT do what you do or would it drive you nuts?

Me, I can't stop offering business and technology consulting. I'm a project manager. The job is like an endless series of mistresses, every outfit, and I give them what they want and they reward me. I learn from every client, I'm enriched, I'm fulfilled, I meet all these cool people, from my perspective, what could be better?

But I've been doing this for about 15 years and in truth, there have been some less than stellar results. Sometimes the intended benefits fall below expectation. It's not something I, like any businessman in this position, exactly likes to talk about but my website records all of this for all to see. We all have to admit we're not always right sometimes.

And I don't think I like this tone of bashing that's incipient. And as an actual producer of value, not one of those who wait and see the results of the produce of people like myself, I'll lay this judgement on Shedlock's challenge:

Comparing portfolio results and saying "nya nya nya I told you so" isn't helping investors because all the smart investors have already been reading you guys for the past years. And starting a fight will only distract people from other important aspects of their lives. So I'm sorry Mish, but you are being hostile and confrontational. It's not necessary. But it's not like I don't read every post you make on your blog. You post at night when us insomniacs need something to think about and man, you come through.

However, to criticize us "buy and hold" folks, although you have qualified your position, consider this: my position in this world is secured by my two hands. Consider that when I show my kids our metal, I show them their ancestors speaking to them. Consider that over these generations, we have heard all of the fancy talk in the world. And consider that if all investments and currency in the world fail, I can still take my metal and bind it into a sock and beat you and all the economists asses with it if I feel like it, so that might describe "intrinsic value" in a way people can understand.

But before it gets to that point Mish, let me tell you this: covering client's assets as of this moment is NOT the highest priotity in all of our minds.


Finally, if you or any of you economists are so smart, why did you miss the single best performing investment category of all recent history?

Ammo. Nearly tripled in price over the past 3 years. That's 100% performance per year. Some of us saw that coming. Where were you geniuses then?

And you aren't going to see our portfolios on that one smart guys. But a theorectical portfolio might look like this:
.410 shotgun kicked your portfolio's ass
.308 kicked your portfolio's ass
poodleshooter kicked your portfolio's ass
.762 in almost any length kicked your portfolio's ass
.40 S&W, hoo boy, kicked your portfolio's ass
.12 shotgun kicked your portfolio's ass

We could run this list forever. But enough with the fighting guys. Perhaps you can see the fighting is best left to us.

1 Comments in Response to

Comment by Aaron Stichter
Entered on:

Well said. Funny ending.

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