Thursday, February 10, 2011

So There’s This Debate Tonight . . .

“The Morning After” is below.
So there’s this debate tonight—Deflation vs. Hyperinflation: Stoneleigh vs. Lira.

Click here to sign up. 
Nicole “Stoneleigh” Foss of The Automatic Earth is going to be arguing that we are experiencing a deflationary depression, while I will be arguing that this depression is hyperinflationary. 

We both agree that we are currently in a depression—a depression that is going to get worse. We just disagree on the road we will collectively be taking to hell. 

Stoneleigh was very prescient insofar as her call about the housing bubble and the 2008 crisis, but I think she is very wrong insofar as What It All Means. So I’ll be presenting my take on the period we are experiencing, and where we will be going in the future. 

Think of it as the Sugar Ray Leonard/Marvelous Marvin Hagler fight of the financial blogosphere. 

The debate is tonight, at 9pm EST. Go here to sign up

We did a bit of practice last night, and I think it’s going to be a lively debate. We will be taking your questions, which I’m very much looking forward to. 


“The Morning After”: 

The debate was a pleasure—Nicole is a lovely person, and as sharp as they come. And though there were a number of issues over which we spiritedly disagreed, the debate itself was a lot of fun—hopefully it will be repeated.

I think the best thing about it was, we both had clear visions as to where the economy is heading, and what to look for as the situation unfolds. I think that allowed the audience to really think over the situation, and decide for themselves what they think is going to happen.

The recording of the debate will be available next week. But for now, I just wanted to thank Nicole, Jay Carter for doing an expert job of moderating, and all of the attendees for having given us their attention.

‘Til next time!



  1. Mr. Lira, will this debate be available for streaming/download later? I am unavailable to listen to it live, due to another commitment. I am very interested to hear your interaction in this debate with Ms. Foss.

  2. Round One: Godzalo wins by a Knockout!

    This Canadian woman is a financial Wacko!

    She predicted that (some) real estate in Canada will fall MORE than 90%!

    Ms. Foss is not an economist or financial expert, not even remotely close to an amateur (student) of either subjects. She has a big mouth and some idiots are giving her a platform to open that big mouth.

  3. Some idiots shelled out $45 to listen to her flap her gum. Hope you're not one of those idiots, David.

  4. @ano: Are you kidding?!?

    We are in the midst of GD2 and I don't have $45 Federal Reserve Notes to spend on nada! I was listening to the free 30 minute pre-bout interview online. It was pretty good . . . to hear Ms. Foss flap her gums. She is a TOTAL WACHO! Godzalo is being very kind in his comments. But the fact is Ms. Foss has no clue as to what is "inflation" or the difference between "price inflation" and "money inflation."

    Ms. Floss and all her cool-aid drinkers need to study this (start at page 4 and read the currency hole, and also the argentina thing on page 6):

    Ms. Floss almost comes across like that CIA disinformation outlet called the "Camelot Project" and their disseminating the whole "Iraqi Dinar" thing.

  5. If you want to know whether we end up with Hyperinflation or Hyper-deflation, it's best to look at what U.S financial elites are doing with their $40+ Trillion in accumulated wealth. I see most of them waiting to see the dollar rise which will increase their purchasing power, drive up interest rates while keeping their cash in short term bonds, and then buy long bonds when rates spike.

  6. In case there was any doubt that CPI is a propogana tool, and nothing more:

  7. What a contrast between GL's civilized compliments about Ms Foss and the ravings of those in the comments section.
    Ah, the Internet...

  8. Some people in this comment thread are in for a nasty shock I think ;)



  9. Mr. Lira, will this debate be available for streaming/download later?

  10. Gonzalo, Nicole, please don't forget the Deaf citizens and post a transcript, too. Thank you!

  11. Good idea Nalply. My daughter is deaf, so I understand completely. We'll see what we can do.

  12. Dear Gonzalo, Please indicate whether your forecast for flat or lower real estate prices
    during hyperinflation applies to farmland? For example, farmland preserved the wealth of Germans during the Weimar event. Perhaps in other events it did not.

  13. Thanks Nicole.

    Wow, your daughter is Deaf. So you can ask her what just happened in Slovakia. It's a pity.

  14. What kind of a moron would pay good money to listen to these two fools debate anything? Get a life!

  15. "What happened to keeping an open mind" is what I came to mind when ready the comments above.

    $45 sounds like a very fair request for two respectible people to hold and enlighten our thoughts on these topics.

    I purchased the text from the first web deal. It did not thrill me. I figure the funds went to a good cause.

    Granted, I wasn't in a hurry to get in this last one. Sounds like it was less expensive and my loss over all. If I had the funds, I might have, but I picked up a little silver the last few weeks and will be broke for a spell.

    All the ugly comments make me sure feel like I missed something. Frankly, I definately think we will have a defationary depression - and it will happen immediately after inflationary jump into hyperinflation. Hyperinflation is in the cards for sure, but cards can be reshuffled. A deflationary abysse is a guarantee.

    Thanks for another thoughtful post. It has been a treat to read Ms. Stoneleigh comments.

    Just my take from Kansas.

  16. I hope at some tome the debate will be offered FREE to the public like debates used to be back in the early 1900's.

    I believe LIRA and FOSS are both correct. We will have HYPERINFLATION then utter DEFLATION. The difference I have is the cause. Martin Armstrong believed the FALL of the ROMAN EMPIRE was due to SOCIALISM and DEBASEMENT of the ROMAN SILVER COIN.

    Socialism and monetary debasement are SYMPTOMS not the CULPRIT. The Roman Empire fell due to a falling EROI (energy returned on invested) of the economic model. The United States will collapse due to a falling EROI of OIL and NATURAL GAS.

    Commerical and Residential Home Prices will collapse due to the fact that there will not be affordable or available energy to run this system much longer.

    COLLAPSE just as Mike Ruppert states is on its way.


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