Yesterday, on a panel at the SALT Conference in Las Vegas, Peter Schiff and Nouriel Roubini got into a heated debate about whether or not inflation is good for the economy. CNBC’s Fast Money spoke with them afterwards to continue the discussion. In the past, Roubini has been known as “Dr. Doom,” but it appears he is changing his tune and now believes inflation and central bank policies to be positive economic forces. Peter vehemently disagreed:
“The central banks are creating this propaganda because they want inflation, because they want to wipe out debt. Inflation is good for debtors because it allows them to default on their debt. You have all these overly indebted governments… They need inflation to prop up asset prices, but the consumer doesn’t need inflation, the economy doesn’t need inflation. What we need is more production and falling prices, because that’s what grows an economy.”
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