The concept of money supply vs. prices is crystal clear to me. Has been for a while. I get that part.
You are saying “price increases be damned – we are in a deflationary environment.” Right ?
And this is the that starts to brings clarity on the concept: “The problem we have is that debt is being destroyed through default faster than the Fed can get money injected into the system”
Where I lose it is – how is it that debt can be destroyed, and if so, how does that actually reduce the money supply?
