A lot of people seem to follow Zero Hedge. I am not a huge fan — the tone is too shouty and too goldbuggish for me, and it is full of perma-bears — but I recently started following it again because it sometimes talks about things that other sources ignore (a good example being the actions of the Swiss central bank last year, around the time that it stopped intervening in the currency market).

Two recent examples show why I am cautious of the site. I am not confident that it will change its views when the facts change (rather than vice versa). It recently pointed to a strong rising trend in M2, which would cohere with its “QE will cause inflation” position; but one can see from a Bloomberg chart that the current growth rate is not particularly unusual (choose a 5-year view on the chart). And last week it took a falling Baltic Dry Index as a reason to be bearish on China (displaying its perma-bearishness), while Calculated Risk gives a better explanation today.

This gives me a real problem. I respect Zero Hedge for focusing on important stories that are missed by other blogs and the news media; but I don’t have any respect for its analysis. So sometimes I subscribe so that I don’t miss anything, but I always unsubscribe shortly afterwards, for fear of having my views polluted.

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