SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GST who wrote (53869)2/15/2006 12:43:58 AM
From: Claude Cormier  Read Replies (1) of 110194
 
- The supply of some things increases -- and an increase in the supply of goods combined with an increase in money supply does nothing to increase the price.

True in the short term.. false in the long term. Read my post again. Things are destroyed or depleted over the long term, and assuming an increase of the money supply, the things that still exist at the end must see their prices increase.

- On the other hand, there are things where the supply can decrease and the price as a result can go up if demand remains high -- and all this can happen while there is a decrease in money supply.

True. But you do not get a general increase in the level of prices. You get only a increase in prices in one or a few sectors and a decrease in prices in other sectors. Overall prices deflation if the money supply decrease.

-- but more or less sunshine in no way dictates in any direct way how much food will be grown.

Everything being equal, yes more sunshine will grow more food in general. No sunshine will grow no food.

-- Food is what you eat. Inflation is the price you pay.

The sun come first, then the food, then the price we pay for it.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext