Home › Forums › Financial Markets/Economics › why is the dollar rallying?
- This topic has 105 replies, 10 voices, and was last updated 16 years, 2 months ago by (former)FormerSanDiegan.
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September 10, 2008 at 11:26 AM #268911September 10, 2008 at 11:37 AM #268604barnaby33Participant
stockstradr, the fundamental problem with this debate is that we disagree on what inflation is. Rising prices are not inflation to me.
Increases in the money supply are inflation to me, credit and money, not just hard cash. If we can agree on that definition of inflation, lets keep talking about this as I’m always interested in hearing why deflation isn’t the way forward.
Josh
September 10, 2008 at 11:37 AM #268829barnaby33Participantstockstradr, the fundamental problem with this debate is that we disagree on what inflation is. Rising prices are not inflation to me.
Increases in the money supply are inflation to me, credit and money, not just hard cash. If we can agree on that definition of inflation, lets keep talking about this as I’m always interested in hearing why deflation isn’t the way forward.
Josh
September 10, 2008 at 11:37 AM #268842barnaby33Participantstockstradr, the fundamental problem with this debate is that we disagree on what inflation is. Rising prices are not inflation to me.
Increases in the money supply are inflation to me, credit and money, not just hard cash. If we can agree on that definition of inflation, lets keep talking about this as I’m always interested in hearing why deflation isn’t the way forward.
Josh
September 10, 2008 at 11:37 AM #268888barnaby33Participantstockstradr, the fundamental problem with this debate is that we disagree on what inflation is. Rising prices are not inflation to me.
Increases in the money supply are inflation to me, credit and money, not just hard cash. If we can agree on that definition of inflation, lets keep talking about this as I’m always interested in hearing why deflation isn’t the way forward.
Josh
September 10, 2008 at 11:37 AM #268916barnaby33Participantstockstradr, the fundamental problem with this debate is that we disagree on what inflation is. Rising prices are not inflation to me.
Increases in the money supply are inflation to me, credit and money, not just hard cash. If we can agree on that definition of inflation, lets keep talking about this as I’m always interested in hearing why deflation isn’t the way forward.
Josh
September 10, 2008 at 11:56 AM #268609peterbParticipantBarnaby33, I think you’ve hit on the real matter and the basic definition of the Austrian Schools’ definition of inflation/deflation.
If wages cant rise, unemployment is rising and credit is constricting, I dont see how this is not deflating money availability.
I think that prices are really supply and demand forces at work. And if demand destruction out paces supply reduction, we should see prices decreasing. That’s all. At any rate, it looks to be the trend we are in right now.
September 10, 2008 at 11:56 AM #268834peterbParticipantBarnaby33, I think you’ve hit on the real matter and the basic definition of the Austrian Schools’ definition of inflation/deflation.
If wages cant rise, unemployment is rising and credit is constricting, I dont see how this is not deflating money availability.
I think that prices are really supply and demand forces at work. And if demand destruction out paces supply reduction, we should see prices decreasing. That’s all. At any rate, it looks to be the trend we are in right now.
September 10, 2008 at 11:56 AM #268847peterbParticipantBarnaby33, I think you’ve hit on the real matter and the basic definition of the Austrian Schools’ definition of inflation/deflation.
If wages cant rise, unemployment is rising and credit is constricting, I dont see how this is not deflating money availability.
I think that prices are really supply and demand forces at work. And if demand destruction out paces supply reduction, we should see prices decreasing. That’s all. At any rate, it looks to be the trend we are in right now.
September 10, 2008 at 11:56 AM #268893peterbParticipantBarnaby33, I think you’ve hit on the real matter and the basic definition of the Austrian Schools’ definition of inflation/deflation.
If wages cant rise, unemployment is rising and credit is constricting, I dont see how this is not deflating money availability.
I think that prices are really supply and demand forces at work. And if demand destruction out paces supply reduction, we should see prices decreasing. That’s all. At any rate, it looks to be the trend we are in right now.
September 10, 2008 at 11:56 AM #268921peterbParticipantBarnaby33, I think you’ve hit on the real matter and the basic definition of the Austrian Schools’ definition of inflation/deflation.
If wages cant rise, unemployment is rising and credit is constricting, I dont see how this is not deflating money availability.
I think that prices are really supply and demand forces at work. And if demand destruction out paces supply reduction, we should see prices decreasing. That’s all. At any rate, it looks to be the trend we are in right now.
September 10, 2008 at 1:52 PM #268629(former)FormerSanDieganParticipantinsiders with huge amounts of money moving the market for their own gain
True, but huge money insiders often lose at their own game. Huge money can move markets in the short run, but eventually economic forces come home to roost.
This happened for many insiders in the spot energy market a few years back (e.g. collapse of Enron), it happened with many inside players in the mortgage market and recently even happened to large hedge fund in the commodities market (Ospraie Management).
September 10, 2008 at 1:52 PM #268854(former)FormerSanDieganParticipantinsiders with huge amounts of money moving the market for their own gain
True, but huge money insiders often lose at their own game. Huge money can move markets in the short run, but eventually economic forces come home to roost.
This happened for many insiders in the spot energy market a few years back (e.g. collapse of Enron), it happened with many inside players in the mortgage market and recently even happened to large hedge fund in the commodities market (Ospraie Management).
September 10, 2008 at 1:52 PM #268866(former)FormerSanDieganParticipantinsiders with huge amounts of money moving the market for their own gain
True, but huge money insiders often lose at their own game. Huge money can move markets in the short run, but eventually economic forces come home to roost.
This happened for many insiders in the spot energy market a few years back (e.g. collapse of Enron), it happened with many inside players in the mortgage market and recently even happened to large hedge fund in the commodities market (Ospraie Management).
September 10, 2008 at 1:52 PM #268913(former)FormerSanDieganParticipantinsiders with huge amounts of money moving the market for their own gain
True, but huge money insiders often lose at their own game. Huge money can move markets in the short run, but eventually economic forces come home to roost.
This happened for many insiders in the spot energy market a few years back (e.g. collapse of Enron), it happened with many inside players in the mortgage market and recently even happened to large hedge fund in the commodities market (Ospraie Management).
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