WEISS CHANGES COURSE

Gary North, LewRockwell.com: Dr. Martin Weiss has reversed course. He now thinks price inflation lies ahead.

This is the equivalent of Steve Jobs announcing: "The future of computing over the next decade is with Microsoft Windows 7."

I have waited for this for 27 years. Better late than never. His announcement is here.

Dr. Weiss is the son of J. Irving Weiss. I first heard his father at the very first gold investment conference, back in the fall of 1967. It was sponsored by Harry Schultz. At that conference, most speakers predicted an era of price inflation. The lone exception was J. Irving Weiss. He predicted deflation. He recommended being 100% in Treasury bills.

I remember phoning my parents and telling them to switch their retirement money to American $20 gold coins: 100% of it. They did.

A month later, the British government devalued the pound. The price of gold began moving up.

The American price level (CPI) in 1967 was less than one-sixth of what it is today. Shultz's speakers were correct, with one exception.

Martin Weiss continued his father's tradition relentlessly until this week.

He has not said that there will never be price deflation. (Neither do I.) He has clearly said that, at this point, price inflation is the threat. (So do I.)

This leaves deflationists "Mish" Shedlock, Rick Ackerman, and Robert Prechter with one fewer member in the always tiny deflationist hard money camp. (The Keynesians always worry about deflation, never about inflation.)
-flynn