The Realist

"Below we divide economic observers into two categories, Realists and Nominalists, in the current environment:

1) Realists – those who advocate for the expansion of exchange value of the aggregate money stock via an increase in the value of each monetary unit (deflationists)

2) Nominalists – those who advocate for the expansion of exchange value of the aggregate money stock via an increase in the number of monetary units (inflationists)

The great divide seems to be properly delineated on most fronts:

1) Unlevered savers, wage-earners, the 99%, etc. are all Realists (unknowingly perhaps). They benefit from a rising exchange value of the currency unit (i.e. they are structurally long the currency unit)

2) Bankers, unreserved leveragers of all stripes and those that benefit from leveraging are Nominalists. They are either monopoly producers and distributors of fiat currency or direct beneficiaries of the process as levered entities (i.e. they are structurally short the exchange value of the currency unit)"

Full article at: http://www.ritholtz.com/blog/2012/10/the-realist/