Re: Oil/Inflation-“Are we headed for Weimar, or is it just Hyperinflation Hyperventilation?” / Our Geographic Advantages.

Thanks to yesterday’s discussion around my tweet of Druckenmiller’s quote, I wanted to collect my thoughts and address this question more formally.

My Thesis: It will create inflation for sure, but this in and of itself will force a self- correcting negative feedback loop that may prick asset bubbles but will prevent a much worse positive feedback loop that eventually breaks the system.

When you analyze a company’s creditworthiness, you have to focus not just on its cashflow/income statements, but a…