Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: ajtj99 who wrote (81120)	7/7/2008 4:37:18 PM
From: RonMerks	Read Replies (2) of 116555

Hussman: 'In short, inflation results from an increase in the marginal utility of goods and services, relative to the marginal utility of money. It can reflect supply constraints, unsatisfied demand, excessive growth of government liabilities, or a reduction in the willingness of people to hold those liabilities. Apart from commodity prices, which may take a bit longer to reverse, the pressures on marginal utilities are presently on the disinflationary side.' Sheesh. Can't #@%$'n economists speak simple english. Print too damn much money- you get inflation. Let banks financial engineer a simple mortgage portfolio- into multi layered tranches of reinsured goobledly gook levered 30:1- and you'll get inflation. Hand out stimulus packages like flu shots- you'll get inflation. Cut interest rates below the rate of inflation and hold them there for years- you'll get inflation. Do all that- and you'll get deflation- when, not if, as the whole F#@$'n house of cards implodes. FWIW, I think I just saw 'if' fly past us- and it looks like 'when' is just around the bend. Ron

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