pricing behavior is making a laughing stock of definitions
(as for CNBC economist claims of later cuts being important, as long as the public has no clue as to what is happening, they will buy the idea or doubt the idea, but certainly have no real basis for either... they will just harbor a gut feeling that something is very wrong, with our financial system gone awry)
inflation
deflation
disinflation
liquidity
money supply
falling asset prices
rising bond prices
rising (now temporarily falling) producer prices
rising (now temporarily falling) energy prices
rising utility prices
rising consumer necessity prices
rising entertainment prices
rising taxes
ECONOMISTS DONT HAVE AN EFFING CLUE HOW EVEN TO DESCRIBE WHAT IS GOING ON, LET ALONE OFFER UP A REMEDY
this would be hilarious, if not for its tragedy
MONETARY OVER-EXPANSION (BASE INFLATION) BREEDS PRICE INFLATION IN AREAS WHERE SPECULATION PUSHES DEMAND AND OBSTACLES INHIBIT SUPPLY
MONETARY OVER-EXPANSION (BASE INFLATION) BREEDS PRICE DEFLATION IN AREAS WHERE OVERCAPACITY PUSHES OVERPRODUCTION AND LIQUIDATIONS FOLLOW
we now are seeing speculative bubble asset prices in stocks come down
we now are seeing a new speculative bubble in both Treasury Bonds and residential Real Estate, which will later reverse
nothing, absolutely nothing, has stopped the INFLATION engine at the Fed from full throttle, pedal to the metal, balls to the wall, as they expand MZM money supply
this means we are still planting millions and billions of inflationary seeds in our economy and financial markets
it just seems as though the forces of their "inflation" are offsetting their "deflation"
BUT THAT IS NOT THE CASE
instead, the Fed is creating price inflation in pockets, such as commodities and housing, even while liquidation continues and products are marked down in price
brought to you by an economist in heart & spirit, but a statistician by trade
/ jim |
