Both Mish and Russ are fighting the myth that Feds are pumping liquidity into the system.

They are not. What uneducated media takes for liquidity and inflation is just a credit bubble. Remember, money is a claim for goods, credit is a claim for money. If the borrower is in financial difficulty the credit is not as good as money and is very hard to collect. All this “inflation” is just speculation on margin.

What most economists are missing or are too shy to mention is that the last time the credit bubble of current magnitude happened it was back in 1920s and never again since then. More about that in my Kondratieff wave page