You say Inflation…I say deflation?!

[Arraya]

Brian you don’t understand how the economy works.

If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.

As if, we just add some population the economy will magically grow. Good grief

[briansd1]

[quote=Arraya]Brian you don’t understand how the economy works.

If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.

As if, we just add some population the economy will magically grow. Good grief[/quote]

Arraya, you’re assuming that no money supply growth is a requisite to achieve low inflation.

If you add productivity and population you can increase the money supply and not cause inflation (I define inflation as increase in prices).

[briansd1]

[quote=Arraya]Brian you don’t understand how the economy works.

If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.

As if, we just add some population the economy will magically grow. Good grief[/quote]

Arraya, you’re assuming that no money supply growth is a requisite to achieve low inflation.

If you add productivity and population you can increase the money supply and not cause inflation (I define inflation as increase in prices).

[briansd1]

[quote=Arraya]Brian you don’t understand how the economy works.

If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.

As if, we just add some population the economy will magically grow. Good grief[/quote]

Arraya, you’re assuming that no money supply growth is a requisite to achieve low inflation.

If you add productivity and population you can increase the money supply and not cause inflation (I define inflation as increase in prices).

[briansd1]

[quote=Arraya]Brian you don’t understand how the economy works.

If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.

As if, we just add some population the economy will magically grow. Good grief[/quote]

Arraya, you’re assuming that no money supply growth is a requisite to achieve low inflation.

If you add productivity and population you can increase the money supply and not cause inflation (I define inflation as increase in prices).

[briansd1]

[quote=Arraya]Brian you don’t understand how the economy works.

If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.

As if, we just add some population the economy will magically grow. Good grief[/quote]

Arraya, you’re assuming that no money supply growth is a requisite to achieve low inflation.

If you add productivity and population you can increase the money supply and not cause inflation (I define inflation as increase in prices).

[bubba99]

The rate at which the FED is printing money should cause inflation via deflation of the currency. This is not happening because the M3 money supply is crashing. From a high of +16% growth in 2008 to a negative 6% growth currently (shadowstats.com) The rapid decrease in velocity of money is acting to offset the rapid increase in the printing presses.

In the short run, look for the slowing economy to offset the printing presses, maybe even a little inflation. The official CPI is bouncing around 1 or 2 percent, but the real inflation rate is between 4 and 6 percent (shadowstats.com)

In the longer run, look for the decrease in lending to level off, and the M3 money supply to begin to grow again because of the FED printing our way out of debt. This will bring hyperinflation.

I have consistently underestimated the amount of time it will take for the currency to change direction, so while I expect inflation to begin within a year, expect it much later.

[bubba99]

The rate at which the FED is printing money should cause inflation via deflation of the currency. This is not happening because the M3 money supply is crashing. From a high of +16% growth in 2008 to a negative 6% growth currently (shadowstats.com) The rapid decrease in velocity of money is acting to offset the rapid increase in the printing presses.

In the short run, look for the slowing economy to offset the printing presses, maybe even a little inflation. The official CPI is bouncing around 1 or 2 percent, but the real inflation rate is between 4 and 6 percent (shadowstats.com)

In the longer run, look for the decrease in lending to level off, and the M3 money supply to begin to grow again because of the FED printing our way out of debt. This will bring hyperinflation.

I have consistently underestimated the amount of time it will take for the currency to change direction, so while I expect inflation to begin within a year, expect it much later.

[bubba99]

The rate at which the FED is printing money should cause inflation via deflation of the currency. This is not happening because the M3 money supply is crashing. From a high of +16% growth in 2008 to a negative 6% growth currently (shadowstats.com) The rapid decrease in velocity of money is acting to offset the rapid increase in the printing presses.

In the short run, look for the slowing economy to offset the printing presses, maybe even a little inflation. The official CPI is bouncing around 1 or 2 percent, but the real inflation rate is between 4 and 6 percent (shadowstats.com)

In the longer run, look for the decrease in lending to level off, and the M3 money supply to begin to grow again because of the FED printing our way out of debt. This will bring hyperinflation.

I have consistently underestimated the amount of time it will take for the currency to change direction, so while I expect inflation to begin within a year, expect it much later.

[bubba99]

The rate at which the FED is printing money should cause inflation via deflation of the currency. This is not happening because the M3 money supply is crashing. From a high of +16% growth in 2008 to a negative 6% growth currently (shadowstats.com) The rapid decrease in velocity of money is acting to offset the rapid increase in the printing presses.

In the short run, look for the slowing economy to offset the printing presses, maybe even a little inflation. The official CPI is bouncing around 1 or 2 percent, but the real inflation rate is between 4 and 6 percent (shadowstats.com)

In the longer run, look for the decrease in lending to level off, and the M3 money supply to begin to grow again because of the FED printing our way out of debt. This will bring hyperinflation.

I have consistently underestimated the amount of time it will take for the currency to change direction, so while I expect inflation to begin within a year, expect it much later.

[bubba99]

The rate at which the FED is printing money should cause inflation via deflation of the currency. This is not happening because the M3 money supply is crashing. From a high of +16% growth in 2008 to a negative 6% growth currently (shadowstats.com) The rapid decrease in velocity of money is acting to offset the rapid increase in the printing presses.

In the short run, look for the slowing economy to offset the printing presses, maybe even a little inflation. The official CPI is bouncing around 1 or 2 percent, but the real inflation rate is between 4 and 6 percent (shadowstats.com)

In the longer run, look for the decrease in lending to level off, and the M3 money supply to begin to grow again because of the FED printing our way out of debt. This will bring hyperinflation.

I have consistently underestimated the amount of time it will take for the currency to change direction, so while I expect inflation to begin within a year, expect it much later.

[andymajumder]

I say Stagflation. Due to globalization and availability of cheap educated labor in Asia, job growth will continue to be anemic in US, and even those who do have decent jobs in the private sector will not see any significant increase in their compensation due to outsourcing pressure. Of course the top management in most of the private sector will continue to do great as profits continue grow due to expansion in Asia and latin america. Feds policies will lead to inflation in commodity and energy prices which will creep into food and transportation. So thing will get more expensive while salaries will stagnate. Middle class will continue get hammered, the rich will get richer (specially those with exposure to commodity stocks and top management of MNCs)…disparity between the haves and have nots will continue to grow.

[andymajumder]

I say Stagflation. Due to globalization and availability of cheap educated labor in Asia, job growth will continue to be anemic in US, and even those who do have decent jobs in the private sector will not see any significant increase in their compensation due to outsourcing pressure. Of course the top management in most of the private sector will continue to do great as profits continue grow due to expansion in Asia and latin america. Feds policies will lead to inflation in commodity and energy prices which will creep into food and transportation. So thing will get more expensive while salaries will stagnate. Middle class will continue get hammered, the rich will get richer (specially those with exposure to commodity stocks and top management of MNCs)…disparity between the haves and have nots will continue to grow.

[andymajumder]

I say Stagflation. Due to globalization and availability of cheap educated labor in Asia, job growth will continue to be anemic in US, and even those who do have decent jobs in the private sector will not see any significant increase in their compensation due to outsourcing pressure. Of course the top management in most of the private sector will continue to do great as profits continue grow due to expansion in Asia and latin america. Feds policies will lead to inflation in commodity and energy prices which will creep into food and transportation. So thing will get more expensive while salaries will stagnate. Middle class will continue get hammered, the rich will get richer (specially those with exposure to commodity stocks and top management of MNCs)…disparity between the haves and have nots will continue to grow.

[andymajumder]

I say Stagflation. Due to globalization and availability of cheap educated labor in Asia, job growth will continue to be anemic in US, and even those who do have decent jobs in the private sector will not see any significant increase in their compensation due to outsourcing pressure. Of course the top management in most of the private sector will continue to do great as profits continue grow due to expansion in Asia and latin america. Feds policies will lead to inflation in commodity and energy prices which will creep into food and transportation. So thing will get more expensive while salaries will stagnate. Middle class will continue get hammered, the rich will get richer (specially those with exposure to commodity stocks and top management of MNCs)…disparity between the haves and have nots will continue to grow.

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