Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (13672)	10/20/2004 4:44:04 AM
From: zonder	Read Replies (8) of 116555

Mish, I hope you are kidding here: >>>simultaneous "inflation" and "deflation" is just not possible.<<< Sure it is. The PPI can be rising and the CPI falling. +PPI and -CPI in any given month does NOT mean economy is undergoing inflation AND deflation SIMULTANEOUSLY. It just means that at that particular point in time, raw material prices etc have gone up faster than expected (i.e. prices were increased). Very possibly, CPI could increase over the next couple of months in compensation, as higher costs are passed to the consumer. None of that means inflation NOR deflation. There is no reason why this is not possible Simultaneous inflation and deflation might be possible in the realm of quantum physics where a particle might have two states at the same time. But in our world, things (and economies) are either heating or cooling, accelerating or decelerating, and yes, inflating or deflating. Sorry, but that's the way it is.

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