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

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To: orkrious who wrote (70062)9/21/2006 3:10:38 PM
From: ild  Read Replies (2) of 110194
 
@oil and inflation -- trotsky, 14:19:53 09/21/06 Thu
in the following article, Frank Shostak explains (as i have long argued here as well) that a rise or fall in the price of crude oil has exactly zero effect on 'inflation' unless it is accompanied by Fed actions designed to expand or contract the supply of money. it is basically the very same argument i have often made here, but it's always good to have some corroberation (also, there are some interesting charts - especially, money AMS shows what we have already observed in the narrow money gauges - the RoC of money supply growth is decelerating sharply. narrow money gauges actually exhibit negative growth at present):

Will An Oil Price Fall Push Inflation Down?
mises.org
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