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?
So, when you are looking at the world as a deflationist, confident of your opinion, what actions/investments/decisions taken by the inflationary crowd look foolish and why?
Also, how does this deflationary world differ, qualitatively from the stagflation world? Instead of slowing economy and increasing money supply, we have a slowing economy and decreasing money supply ?
I can go that far, but the implications/repercussions escape me.
So, when you are looking at the world as a deflationist, confident of your opinion, what actions/investments/decisions taken by the inflationary crowd look foolish and why?
Also, how does this deflationary world differ, qualitatively from the stagflation world? Instead of slowing economy and increasing money supply, we have a slowing economy and decreasing money supply ?
I can go that far, but the implications/repercussions escape me.
So, when you are looking at the world as a deflationist, confident of your opinion, what actions/investments/decisions taken by the inflationary crowd look foolish and why?
Also, how does this deflationary world differ, qualitatively from the stagflation world? Instead of slowing economy and increasing money supply, we have a slowing economy and decreasing money supply ?
I can go that far, but the implications/repercussions escape me.
So, when you are looking at the world as a deflationist, confident of your opinion, what actions/investments/decisions taken by the inflationary crowd look foolish and why?
Also, how does this deflationary world differ, qualitatively from the stagflation world? Instead of slowing economy and increasing money supply, we have a slowing economy and decreasing money supply ?
I can go that far, but the implications/repercussions escape me.
So, when you are looking at the world as a deflationist, confident of your opinion, what actions/investments/decisions taken by the inflationary crowd look foolish and why?
Also, how does this deflationary world differ, qualitatively from the stagflation world? Instead of slowing economy and increasing money supply, we have a slowing economy and decreasing money supply ?
I can go that far, but the implications/repercussions escape me.
