Trying to understand inflation

[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.

[Rich Toscano]

[quote=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.[/quote]

Yes.

Rich

[Rich Toscano]

[quote=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.[/quote]

Yes.

Rich

[Rich Toscano]

[quote=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.[/quote]

Yes.

Rich

[Rich Toscano]

[quote=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.[/quote]

Yes.

Rich

[Rich Toscano]

[quote=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.[/quote]

Yes.

Rich

[peterb]

Check out Chris Martinsens vid on the way the US GDP is calculated. It’s very misleading and inaccurate. As is the BLS calculation for unemployment. Might as well throw the CPI in there as well.
The discussion about money should center around wages and credit. These are how people have the ability to purchase things. If there’s downward pressure on wages and a contraction of credit, then you can bet that assets that require wages and credit will be experiencing downward pressure on their prices. In order to satisfy the demand part of the equation, buyers have to have the desire and the “ability” to purchase.

[peterb]

Check out Chris Martinsens vid on the way the US GDP is calculated. It’s very misleading and inaccurate. As is the BLS calculation for unemployment. Might as well throw the CPI in there as well.
The discussion about money should center around wages and credit. These are how people have the ability to purchase things. If there’s downward pressure on wages and a contraction of credit, then you can bet that assets that require wages and credit will be experiencing downward pressure on their prices. In order to satisfy the demand part of the equation, buyers have to have the desire and the “ability” to purchase.

[peterb]

Check out Chris Martinsens vid on the way the US GDP is calculated. It’s very misleading and inaccurate. As is the BLS calculation for unemployment. Might as well throw the CPI in there as well.
The discussion about money should center around wages and credit. These are how people have the ability to purchase things. If there’s downward pressure on wages and a contraction of credit, then you can bet that assets that require wages and credit will be experiencing downward pressure on their prices. In order to satisfy the demand part of the equation, buyers have to have the desire and the “ability” to purchase.

[peterb]

Check out Chris Martinsens vid on the way the US GDP is calculated. It’s very misleading and inaccurate. As is the BLS calculation for unemployment. Might as well throw the CPI in there as well.
The discussion about money should center around wages and credit. These are how people have the ability to purchase things. If there’s downward pressure on wages and a contraction of credit, then you can bet that assets that require wages and credit will be experiencing downward pressure on their prices. In order to satisfy the demand part of the equation, buyers have to have the desire and the “ability” to purchase.

[peterb]

Check out Chris Martinsens vid on the way the US GDP is calculated. It’s very misleading and inaccurate. As is the BLS calculation for unemployment. Might as well throw the CPI in there as well.
The discussion about money should center around wages and credit. These are how people have the ability to purchase things. If there’s downward pressure on wages and a contraction of credit, then you can bet that assets that require wages and credit will be experiencing downward pressure on their prices. In order to satisfy the demand part of the equation, buyers have to have the desire and the “ability” to purchase.

[Author]

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