Jim Willie Digs a Deeper Hole for Himself.
I recently wrote an article warning people that Jim Willie's prediction of a Treasury debt collapse in the next few months is wrong. //www.garynorth.com/public/11593.cfm
I was quite specific. He had Federal Reserve transactions backwards. He claimed that the sale of Treasury debt by regional Federal Reserve banks would lower interest rates. It would in fact raise rates. I explained why. I cited Murray Rothbard.
I warned Mr. Willie that it would be unwise to respond on this point, since he was already in a hole. He did take my advice. He refused to refer to my specific arguments. That was wise.
Instead, he attacked me personally.
A DEEPER HOLE
Here is how he began.
A rebuttal is warranted. The entire analytic discussion, defense of viewpoints, exposure of corrupted markets, and intriguing human psychology regarding forecasts is covered. It might be enlightening to many folks. It might be entertaining to some. It might be tawdry to a few. Gary North sounds more like a mainstream financial apologist than a sound money advocate. His days at the Lew Rockwell Institute are over. He seems a confused man with a limited comprehension of either the financial system or market developments, who has offered a shallow dispute of the Jackass recent perspective on the USTreasury Bond market. Given his extremely unimpressive analytic ability and dim vision, with a certain blindness extended from a certain perceptual inversion, he will be referred to henceforth as Mr South. Nothing personal, just hard to respect incredibly shallow attacks with no solicitation, surely without recognition of my past correct forecast trail. South is surely a good man, just not a good analyst. His recent essay featuring the Flash Trading and other USTreasury Bond factors was an unsolicited disgraceful assault with hardly a single point of valid substance. It was an extremely unimpressive display. To be sure, High Frequency Trading, also known as Flash Trading, is not skin in the game, and not typical capital at risk. It is a blatant price control practice that produces false levitation in asset prices. The Jackass has a long history of being a team builder. Mr South is not on any team, no longer on the Rockwell team. He has chosen to strike out errantly on his own. Let this article serve as my rebuttal, which should add a good deal more light on the phony USTreasury Bond market which is not well understood for its status as being the greatest asset bubble in human history, not just modern history. It exceeds the housing & mortgage bubble that formed a decade ago, if not from volume, then from scope since it is laced throughout the entire global banking system.
First, there is no Lew Rockwell Institute.
Second, he never refers to my arguments in his very long article. Instead, he says that lots of his past forecasts have been correct.
Third, he does not provide a link to my original article. This keeps his followers from seeing my specific arguments. They do not have the context.
Fourth, he says this: "It is always hard to make a solid rebuttal against small elderly figures. . . ." Actually, I'm 6 feet tall.
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.