He keeps trying. He is always wrong.
I begin with a chart of Federal Reserve monetary policy. Since October 2014, the FED has pursued the longest period of monetary stability in the last 30 years.
Let’s look at this chart from October 2014 until today.
This reveals deflation, not inflation. This is not what is euphemistically referred to as “QE,” or quantitative easing. This is QS — quantitative squeezing.
Any economic analyst who does not begin with these two charts ought to be in another line of work.
JIM WILLIE: AN ANALYST WHO IGNORES THESE CHARTS
Jim Willie is a pro-gold writer. Sadly, he does not understand economics, monetary theory, monetary policy, bonds, stocks, or gold. Other than this, he is A-OK.
He a master of bombast: lots of exclamation points, wild exaggerations, and bold facing for emphasis rather than clarity.
He does not understand Austrian School economics. He does not understand commercial banking. He does not understand the Treasury debt market. But he pontificates as if he did.
I have called his bluff in the past. In September 2013, he predicted a collapse in the Treasury bond market within a year. I said he was dead wrong. I wrote this:
My prediction: None of this will happen in the next 12 months.
My advice is this: ignore his italics, his bold facing, his capitalized words, and his exclamation points. Their only function is to emphasize hype-driven conclusions that are drawn from analytical and conceptual mistakes.
Economically unsophisticated readers love bold facing, italics, and exclamation points. “This must be important,” they think. “I mean, the type face looks really scary.” What is scary is that Jim Willie is taken seriously.
Ignore him. He doesn’t know what he is talking about.
He may decide to respond to my article. I welcome the opportunity to reply. This is like shooting fish in a barrel.
His subscribers will send him links to my article. They will beg him to respond, to show I’ve got it all wrong. I recommend the following to him: “When you’re in a deep hole, stop digging.” The wise strategy would be to pretend I never wrote it. He can hope that most of his subscribers don’t see it, or else they forget about it.
My article is here: http://www.garynorth.com/public/11593.cfm
He soon responded to my article with verbal flatulence — and no link to my original article for his readers to read. He attempted wit:
“It is always hard to make a solid rebuttal against small elderly figures. . . .”
As I responded, I’m 6 feet tall.
I ended my brief response with this:
I have said my piece. He does not understand bonds, monetary theory, and the Federal Reserve System. For a guru of gold, he is at a real disadvantage.
You can read my response here: http://www.garynorth.com/public/11623.cfm
So, I bided my time. I waited one year from his original article. At that point, T-bonds were up in price. There had been no collapse. I went into print to remind my readers of his preposterous prediction a year earlier. You can read my 2014 response here: http://www.garynorth.com/public/12941.cfm.
He never responded as far as I know. I hardly blame him. What could he say?
I remind you of all this because, once again, he is predicting a collapse of T-bonds.
An unwound clock is right twice a day. But Jim Willie isn’t.
The Golden Jackass — his website’s name — brays again.
“IT’S ALL GOING TO COLLAPSE!!!!”
(For the rest of my article, click the link.)