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JWM in SD
Participant“Thus requiring more dollars to buy goods and services).”
Yes, but whose hands are those dollars largely in? The consuming public or Banks/ Wall Street? It is the banks and they are hoarding it because they don’t know who amongst their colleagues are actually insolvent (Assets less their Liabilities). Bernanke is just throwing liquidity at a solvency issue that will ultimately result in a violent mark down of somekind in some way or another. This is ultimately why I know that housing market is toast over the next several years. When I harp on the knowing the Big Picture, this is one of the components of it.
“However, it is difficult for me to turn off the empirical evidence I see every day in my life when I buy milk, gas, and food as well as when I see broad measures of money supply numbers increase. BUt I do have an open mind, and I do see that the strictness of credit is clearly deflationary.”
Switch to an Austrian definition of Inflation / Deflation and then it becomes much easier to see how we end up in a NET Deflationary scenario. Price Increases are an effect and often a temporary one.
“I guess we will know how it turns out as things unfold over the next few years. We can argue all we want, but as Milton Friedman said, “The only relevant test of the validity of a hypothesis is comparison of prediction with experience.”
Point taken…we shall see.
Participant“Thus requiring more dollars to buy goods and services).”
Yes, but whose hands are those dollars largely in? The consuming public or Banks/ Wall Street? It is the banks and they are hoarding it because they don’t know who amongst their colleagues are actually insolvent (Assets less their Liabilities). Bernanke is just throwing liquidity at a solvency issue that will ultimately result in a violent mark down of somekind in some way or another. This is ultimately why I know that housing market is toast over the next several years. When I harp on the knowing the Big Picture, this is one of the components of it.
“However, it is difficult for me to turn off the empirical evidence I see every day in my life when I buy milk, gas, and food as well as when I see broad measures of money supply numbers increase. BUt I do have an open mind, and I do see that the strictness of credit is clearly deflationary.”
Switch to an Austrian definition of Inflation / Deflation and then it becomes much easier to see how we end up in a NET Deflationary scenario. Price Increases are an effect and often a temporary one.
“I guess we will know how it turns out as things unfold over the next few years. We can argue all we want, but as Milton Friedman said, “The only relevant test of the validity of a hypothesis is comparison of prediction with experience.”
Point taken…we shall see.
Participant“Thus requiring more dollars to buy goods and services).”
Yes, but whose hands are those dollars largely in? The consuming public or Banks/ Wall Street? It is the banks and they are hoarding it because they don’t know who amongst their colleagues are actually insolvent (Assets less their Liabilities). Bernanke is just throwing liquidity at a solvency issue that will ultimately result in a violent mark down of somekind in some way or another. This is ultimately why I know that housing market is toast over the next several years. When I harp on the knowing the Big Picture, this is one of the components of it.
“However, it is difficult for me to turn off the empirical evidence I see every day in my life when I buy milk, gas, and food as well as when I see broad measures of money supply numbers increase. BUt I do have an open mind, and I do see that the strictness of credit is clearly deflationary.”
Switch to an Austrian definition of Inflation / Deflation and then it becomes much easier to see how we end up in a NET Deflationary scenario. Price Increases are an effect and often a temporary one.
“I guess we will know how it turns out as things unfold over the next few years. We can argue all we want, but as Milton Friedman said, “The only relevant test of the validity of a hypothesis is comparison of prediction with experience.”
Point taken…we shall see.
Participant“Thus requiring more dollars to buy goods and services).”
Yes, but whose hands are those dollars largely in? The consuming public or Banks/ Wall Street? It is the banks and they are hoarding it because they don’t know who amongst their colleagues are actually insolvent (Assets less their Liabilities). Bernanke is just throwing liquidity at a solvency issue that will ultimately result in a violent mark down of somekind in some way or another. This is ultimately why I know that housing market is toast over the next several years. When I harp on the knowing the Big Picture, this is one of the components of it.
“However, it is difficult for me to turn off the empirical evidence I see every day in my life when I buy milk, gas, and food as well as when I see broad measures of money supply numbers increase. BUt I do have an open mind, and I do see that the strictness of credit is clearly deflationary.”
Switch to an Austrian definition of Inflation / Deflation and then it becomes much easier to see how we end up in a NET Deflationary scenario. Price Increases are an effect and often a temporary one.
“I guess we will know how it turns out as things unfold over the next few years. We can argue all we want, but as Milton Friedman said, “The only relevant test of the validity of a hypothesis is comparison of prediction with experience.”
Point taken…we shall see.
Participant“…and rents keeping up with inflation…”
Yes, just keep ignoring the 800lb gorilla in the corner of the room.
Here We Go and DWCAP have the right answers.
Nostradamus: Hear, Hear. I was getting pretty concerned myself a couple of weeks ago and thought that this was going to turn into SDCIA II if I didn’t start to poke holes in some of the posts.
Participant“…and rents keeping up with inflation…”
Yes, just keep ignoring the 800lb gorilla in the corner of the room.
Here We Go and DWCAP have the right answers.
Nostradamus: Hear, Hear. I was getting pretty concerned myself a couple of weeks ago and thought that this was going to turn into SDCIA II if I didn’t start to poke holes in some of the posts.
Participant“…and rents keeping up with inflation…”
Yes, just keep ignoring the 800lb gorilla in the corner of the room.
Here We Go and DWCAP have the right answers.
Nostradamus: Hear, Hear. I was getting pretty concerned myself a couple of weeks ago and thought that this was going to turn into SDCIA II if I didn’t start to poke holes in some of the posts.
Participant“…and rents keeping up with inflation…”
Yes, just keep ignoring the 800lb gorilla in the corner of the room.
Here We Go and DWCAP have the right answers.
Nostradamus: Hear, Hear. I was getting pretty concerned myself a couple of weeks ago and thought that this was going to turn into SDCIA II if I didn’t start to poke holes in some of the posts.
Participant“…and rents keeping up with inflation…”
Yes, just keep ignoring the 800lb gorilla in the corner of the room.
Here We Go and DWCAP have the right answers.
Nostradamus: Hear, Hear. I was getting pretty concerned myself a couple of weeks ago and thought that this was going to turn into SDCIA II if I didn’t start to poke holes in some of the posts.
Participant“Perhaps the tightening on one part of the system is intended to hedge what they are doing to influence the another part of the system via rates ?”
Could very well be.
As far as M2 goes, could also be that a lot of companies are cashing in their LOCs and putting the cash into money market funds for future liquidity needs while they still can. Suggest that you read Mish Shedlock’s site for theories on whether the Fed is really “printing” or not.
Participant“Perhaps the tightening on one part of the system is intended to hedge what they are doing to influence the another part of the system via rates ?”
Could very well be.
As far as M2 goes, could also be that a lot of companies are cashing in their LOCs and putting the cash into money market funds for future liquidity needs while they still can. Suggest that you read Mish Shedlock’s site for theories on whether the Fed is really “printing” or not.
Participant“Perhaps the tightening on one part of the system is intended to hedge what they are doing to influence the another part of the system via rates ?”
Could very well be.
As far as M2 goes, could also be that a lot of companies are cashing in their LOCs and putting the cash into money market funds for future liquidity needs while they still can. Suggest that you read Mish Shedlock’s site for theories on whether the Fed is really “printing” or not.
Participant“Perhaps the tightening on one part of the system is intended to hedge what they are doing to influence the another part of the system via rates ?”
Could very well be.
As far as M2 goes, could also be that a lot of companies are cashing in their LOCs and putting the cash into money market funds for future liquidity needs while they still can. Suggest that you read Mish Shedlock’s site for theories on whether the Fed is really “printing” or not.
Participant“Perhaps the tightening on one part of the system is intended to hedge what they are doing to influence the another part of the system via rates ?”
Could very well be.
As far as M2 goes, could also be that a lot of companies are cashing in their LOCs and putting the cash into money market funds for future liquidity needs while they still can. Suggest that you read Mish Shedlock’s site for theories on whether the Fed is really “printing” or not.
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