Trying to understand inflation

[sdduuuude]

A related chart from Mish:

http://globaleconomicanalysis.blogspot.com/2009/09/following-footsteps-of-japan.html

The flip side:

http://www.pcasd.com/the_us_government_will_not_choose_deflation

http://www.pcasd.com/us_not_going_down_japans_road

[Rich Toscano]

Actually sdduuuude I think that Mish’s chart is completely compatible with the arguments made in my two articles you linked to. His is a chart of REAL GDP, adjusted for changes to the purchasing power of the currency. I am on board with the idea that our real GDP growth over the next decade or whatever will be weak. Nominal GDP in comparison with Japan is a different story due to our vastly different monetary policy and the fact that our debt is not financed internally as it is in Japan.

Rich

[Rich Toscano]

Actually sdduuuude I think that Mish’s chart is completely compatible with the arguments made in my two articles you linked to. His is a chart of REAL GDP, adjusted for changes to the purchasing power of the currency. I am on board with the idea that our real GDP growth over the next decade or whatever will be weak. Nominal GDP in comparison with Japan is a different story due to our vastly different monetary policy and the fact that our debt is not financed internally as it is in Japan.

Rich

[Rich Toscano]

Actually sdduuuude I think that Mish’s chart is completely compatible with the arguments made in my two articles you linked to. His is a chart of REAL GDP, adjusted for changes to the purchasing power of the currency. I am on board with the idea that our real GDP growth over the next decade or whatever will be weak. Nominal GDP in comparison with Japan is a different story due to our vastly different monetary policy and the fact that our debt is not financed internally as it is in Japan.

Rich

[Rich Toscano]

Actually sdduuuude I think that Mish’s chart is completely compatible with the arguments made in my two articles you linked to. His is a chart of REAL GDP, adjusted for changes to the purchasing power of the currency. I am on board with the idea that our real GDP growth over the next decade or whatever will be weak. Nominal GDP in comparison with Japan is a different story due to our vastly different monetary policy and the fact that our debt is not financed internally as it is in Japan.

Rich

[Rich Toscano]

Actually sdduuuude I think that Mish’s chart is completely compatible with the arguments made in my two articles you linked to. His is a chart of REAL GDP, adjusted for changes to the purchasing power of the currency. I am on board with the idea that our real GDP growth over the next decade or whatever will be weak. Nominal GDP in comparison with Japan is a different story due to our vastly different monetary policy and the fact that our debt is not financed internally as it is in Japan.

Rich

[sdduuuude]

Just so I understand, you are saying if inflation is 10% and nominal GDP is 5%, that is a real GDP of -5%? If not, please help w/ real GDP definition. Thanks.

[sdduuuude]

Just so I understand, you are saying if inflation is 10% and nominal GDP is 5%, that is a real GDP of -5%? If not, please help w/ real GDP definition. Thanks.

[sdduuuude]

Just so I understand, you are saying if inflation is 10% and nominal GDP is 5%, that is a real GDP of -5%? If not, please help w/ real GDP definition. Thanks.

[sdduuuude]

Just so I understand, you are saying if inflation is 10% and nominal GDP is 5%, that is a real GDP of -5%? If not, please help w/ real GDP definition. Thanks.

[sdduuuude]

Just so I understand, you are saying if inflation is 10% and nominal GDP is 5%, that is a real GDP of -5%? If not, please help w/ real GDP definition. Thanks.

[Arraya]

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html
Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

[Arraya]

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html
Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

[Arraya]

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html
Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

[Arraya]

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html
Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

[Author]

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