The Ph.D's at the Federal Reserve seem to have got it pretty right, Willie has been wrong every single year, without fail.
JIM WILLIE: AN ANALYST WHO IGNORES THESE CHARTSJim 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.
