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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: JBTFD who wrote (21530)11/8/2004 2:08:55 PM
From: mishedlo  Read Replies (1) of 110194
 
The money supply argument guaranteeing price inflation fails the smell test.

"All that money has to go somewhere."
Where did it go in Japan?

I believe the follow charts without a doubt shows that there can be price deflation with monetary inflation

economagic.com
economagic.com

Why does the following guarantee FUTURE price inflation if it did not in Japan?
economagic.com
or this
economagic.com

BTW take that M3 chart and just look at the period 1999 to 2004 and tell me what you see. M3 is on the verge of contracting. IMO money supply will contract in a housing slump.

Mish
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