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

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To: YanivBA who wrote (70138)9/23/2006 3:34:07 AM
From: mishedlo  Read Replies (1) of 110194
 
I want also to note that if you accept my definition of deflation and that deflation is not the opposite of inflation it is theoretically possible to have both a deflation and an inflation at the same time. The safe heaven that springs to mind is gold, of course, or possibly oil. However, things would have to get pretty volatile for those to be generally considered safe again.

YanivBA.


You definition is illogical

It is like arguing that up is not the opposite of down.
Of course one can define words to mean whatever one wants and that in fact is what people accuse me of when in fact I use a widely held definition (although not the most widely held definition).

At any rate without acceptance of what practical use is there just to make stuff up? More to the point what use is there to have a term like that with no opposite but no opposite? What are you going to do, coin two new words that are the opposite of inflation and deflation? Please dont!

If inflation is related to money supply it is not only pointless but silly to suggest deflation is not related to money supply but rather business risk.

Now OK if you do not accept that inflation is a monetary thing then it is acceptable to suggest that deflation is not either, but to seriously propose that inflation and deflation are not opposites goes well beyond silliness to complete absurdity.

Some people have proposed there is deflation is some things and inflation in others, and that is possible if one does not accept that inflation and deflation are monetary phenemon but related to prices of goods and services. But for any particular good or service it is impossible to have both inflation and deflation at the same time.

Perhaps you are attempting to clear up the inflation/deflation debate but all you have done is sling more mud in the air.
The idea that inflation equates to the CPI but deflation equates to business risk is therefore complete total nonsense.

Mish
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