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: mishedlo who wrote (75821)12/16/2006 5:19:02 PM
From: pogohere  Read Replies (1) of 110194
 
It seems pretty clear that imports have kept prices of goods lower than they would have been. I think it's fair to call this disinflation. The Chinese have been expanding credit in China for the purpose of building productive enterprises. With their low labor costs, we have a disinflation in the price of their exports. How long this continues is debatable.

The question then becomes what we use as a measure of inflation understood as a rise in prices. If we effectively leave out the stock markets and housing prices when we measure inflation as price rises, and we play games with bs like hedonic valuations, we miss the effect of the expansion of liquidity and credit. The official figures on CPI do just that: they don't measure the real universe of prices, mismeasure productivity and give false readings of inflation.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News