[sdduuuude]

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?

Thanks for the education so far …

[sdduuuude]

OK, barnaby. A good start. As I said, it is slow to sink in.

You said “lowering (is) an inflationary tactic if the money has nowhere priductive to go”

Don’t you mean, lowering is an inflationary tactic if the money has SOMEWHERE to go?

So, the idea is that the money supply is shrinking, not growing because the money that was created by new debt (as opposed to actual printing) has gone bye-bye ?

And the fed is lowering but not necessarily lending because the banks don’t want to borrow from the fed to lend out.

[sdduuuude]

OK, barnaby. A good start. As I said, it is slow to sink in.

You said “lowering (is) an inflationary tactic if the money has nowhere priductive to go”

Don’t you mean, lowering is an inflationary tactic if the money has SOMEWHERE to go?

So, the idea is that the money supply is shrinking, not growing because the money that was created by new debt (as opposed to actual printing) has gone bye-bye ?

And the fed is lowering but not necessarily lending because the banks don’t want to borrow from the fed to lend out.

[sdduuuude]

OK, barnaby. A good start. As I said, it is slow to sink in.

You said “lowering (is) an inflationary tactic if the money has nowhere priductive to go”

Don’t you mean, lowering is an inflationary tactic if the money has SOMEWHERE to go?

So, the idea is that the money supply is shrinking, not growing because the money that was created by new debt (as opposed to actual printing) has gone bye-bye ?

And the fed is lowering but not necessarily lending because the banks don’t want to borrow from the fed to lend out.

[sdduuuude]

OK, barnaby. A good start. As I said, it is slow to sink in.

You said “lowering (is) an inflationary tactic if the money has nowhere priductive to go”

Don’t you mean, lowering is an inflationary tactic if the money has SOMEWHERE to go?

So, the idea is that the money supply is shrinking, not growing because the money that was created by new debt (as opposed to actual printing) has gone bye-bye ?

And the fed is lowering but not necessarily lending because the banks don’t want to borrow from the fed to lend out.

[sdduuuude]

OK, barnaby. A good start. As I said, it is slow to sink in.

You said “lowering (is) an inflationary tactic if the money has nowhere priductive to go”

Don’t you mean, lowering is an inflationary tactic if the money has SOMEWHERE to go?

So, the idea is that the money supply is shrinking, not growing because the money that was created by new debt (as opposed to actual printing) has gone bye-bye ?

And the fed is lowering but not necessarily lending because the banks don’t want to borrow from the fed to lend out.

[sdduuuude]

Dear landlord

It’s an interesting offer, but no thank you.

Signed
tenant

[sdduuuude]

Dear landlord

It’s an interesting offer, but no thank you.

Signed
tenant

[sdduuuude]

Dear landlord

It’s an interesting offer, but no thank you.

Signed
tenant

[sdduuuude]

Dear landlord

It’s an interesting offer, but no thank you.

Signed
tenant

[sdduuuude]

Dear landlord

It’s an interesting offer, but no thank you.

Signed
tenant

[sdduuuude]

JWM. I have been following your deflation comments and those of Mish and my favorite piggington poster of all time – 4plexowner.

I can’t say it is quite sinking in. Sometimes I’m slow like that because I need to understand, in detail what you are saying before I have the “aha”. It hasn’t kicked in yet.

So, if you don’t mind, could you put some detail to this deflation thing, the theory behind it. The cause and effect.

I mean, I see the Feds cutting. I see the dollar dropping. It all says “devaluing dollar” = inflation, right?

Are you saying an upcoming deflationary period will be preceeded by an inflationary period, or will we drop right into it? Will the dollar devalue AND prices come down? Are you talking Gold? Oil? Stocks? Housing? Vegetables? Milk? Assets? Commodities? all deflating?

4plexowner mentioned some theory, but I can’t find the thread to read up on it.

Thanks in advance for the education.

[sdduuuude]

JWM. I have been following your deflation comments and those of Mish and my favorite piggington poster of all time – 4plexowner.

I can’t say it is quite sinking in. Sometimes I’m slow like that because I need to understand, in detail what you are saying before I have the “aha”. It hasn’t kicked in yet.

So, if you don’t mind, could you put some detail to this deflation thing, the theory behind it. The cause and effect.

I mean, I see the Feds cutting. I see the dollar dropping. It all says “devaluing dollar” = inflation, right?

Are you saying an upcoming deflationary period will be preceeded by an inflationary period, or will we drop right into it? Will the dollar devalue AND prices come down? Are you talking Gold? Oil? Stocks? Housing? Vegetables? Milk? Assets? Commodities? all deflating?

4plexowner mentioned some theory, but I can’t find the thread to read up on it.

Thanks in advance for the education.

[sdduuuude]

JWM. I have been following your deflation comments and those of Mish and my favorite piggington poster of all time – 4plexowner.

I can’t say it is quite sinking in. Sometimes I’m slow like that because I need to understand, in detail what you are saying before I have the “aha”. It hasn’t kicked in yet.

So, if you don’t mind, could you put some detail to this deflation thing, the theory behind it. The cause and effect.

I mean, I see the Feds cutting. I see the dollar dropping. It all says “devaluing dollar” = inflation, right?

Are you saying an upcoming deflationary period will be preceeded by an inflationary period, or will we drop right into it? Will the dollar devalue AND prices come down? Are you talking Gold? Oil? Stocks? Housing? Vegetables? Milk? Assets? Commodities? all deflating?

4plexowner mentioned some theory, but I can’t find the thread to read up on it.

Thanks in advance for the education.

[sdduuuude]

JWM. I have been following your deflation comments and those of Mish and my favorite piggington poster of all time – 4plexowner.

I can’t say it is quite sinking in. Sometimes I’m slow like that because I need to understand, in detail what you are saying before I have the “aha”. It hasn’t kicked in yet.

So, if you don’t mind, could you put some detail to this deflation thing, the theory behind it. The cause and effect.

I mean, I see the Feds cutting. I see the dollar dropping. It all says “devaluing dollar” = inflation, right?

Are you saying an upcoming deflationary period will be preceeded by an inflationary period, or will we drop right into it? Will the dollar devalue AND prices come down? Are you talking Gold? Oil? Stocks? Housing? Vegetables? Milk? Assets? Commodities? all deflating?

4plexowner mentioned some theory, but I can’t find the thread to read up on it.

Thanks in advance for the education.

[Author]

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