From what we have seen, I will concede that jiraiya would probably lose. If what Itachi said about Jiraiya beating them was true, then Jiraiya is capable of some stuff we haven't seen yet beyond the impressive stuff we have seen.
Except Itachi doesn't know Jiraya's full capabilities such as Sage Mode so his analysis is incomplete. And since Susanno wasn't invented at the time by Kishi things have changed since 2000 freaking 8.
Kishi probably didn't know what Susano'o was going to be like back then, but he definitely had it in mind for Itachi. Like Q99 said, there's the naming reference to the 2 Kami who were siblings (Ama & Tsu), who had another sibling, Susano'o.
Story-wise, Itachi had Susano'o from the moment he unlocked the MS.
__________________
"To all visitors from Transylvania looking for the head of Voivode Dracula: Yes, we have it. Yes, he's dead. No, you cannot see it. No, he will not return and invade you again. It has been over thirty years, please stop pestering us."
Last edited by Demonic Phoenix on Nov 24th, 2012 at 11:24 PM
Guys, let's assume Itachi could beat Jiraiya in this scenario. Is he still going to try? No, of course not. He's a good guy who wants to keep Konoha safe. Why would he kill one of it's best fighters?
Otherwise, since he didn't know about Sage Mode, we can only assume that the title Sanin intimidates him. Which also doesn't make sense because Itachi has already curbstomped a Sanin.
So yeah, he's lying. There really is nothing else that fits based on the material unless we conclude Kishi did some retconning.
Dudes, character statements > logic/feats/deductions/everything else.
Though it really is lulzy how hard bigjuggyman's trying to convince us that Sarutobi > Hashirama, and Jiraiya > Itachi + Kisame.
__________________
"To all visitors from Transylvania looking for the head of Voivode Dracula: Yes, we have it. Yes, he's dead. No, you cannot see it. No, he will not return and invade you again. It has been over thirty years, please stop pestering us."
Because he couldn't beat Itachi at the end of the day, but Jiraiya could beat both him and Kisame, at once, and likely could have taken all of Akatsuki.