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

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To: orkrious who wrote (75312)12/11/2006 3:24:08 PM
From: GST  Read Replies (1) of 110194
 
LOL -- Do you hear what you are saying? You are talking about prices while denying that you are talking about prices. When this guy talks about inflation he is talking about prices. He sometimes uses the word price inflation. He sometimes refers to inflation showing up in assets. If inflation shows up in assets how do you know? Not with a rectal thermometer I can assure you. He knows because of persistent changes in asset prices.

Money supply and credit expansion play a role in fueling inflation -- nobody ever disputes that for a moment. But only the lunatic fringe claim that an expansion of money and credit supply is inflation. Inflation is always a matter of persistent changes in prices -- the only serious debate (other than in flaky flaky land) is on the contributions of various factors, one of which is money and credit supply.
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