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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST

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To: elmatador who wrote (35901)8/6/2008 9:33:29 PM
From: Robin Plunder  Read Replies (2) of 217591
 
"Elmat's biggest discover. Inflation exists when one 'anchor' price (fixed and firm and no subject to twinkling) exists and against which other prices are measured.

Does inflation exist when EVERYTHING is going up ALL AT ONCE?

Think Einstein relativity. If I am moving, I only can move relative to something, and my speed is only measured against the other bodies moving.

Also my anchor is subject to Heisenberg's UNCERTAINTY principle.

As soon as I measure and publish my inflation rate, immediately it moves. That happens based on market's perception that it creates on the market.

Goods were priced in USD. USD and the US inflation were the anchors. Achor -that thing that should be fixed into the ocean floor holding that VLCC oil tanker is now a Styrofoam bubbling on top of the ocean.

Now market and economists alike are measuring their price versus Styrofoam anchor bubbling on top of the ocean waves moving up and down. Can we call that inflation?

No we cannot. Theory of the communicating vases. As soon as you let the vases communicate, the water flow until all the vases are at the same level. Unless there are taps that can be closed or and open.

The big vase that hogged all the water and let the others dry, is trying to keep its water level as much as possible, by pumping water into its vase (printing USD money) to avoid the inevitable. That makes more and more water flow into the low level vases (a.k.a. emerging markets).

Today the emerging vases are getting full and fuller because the torrent of water coming from the big vase USA. If all the vases are getting full all at once there is no inflation at all."

seems like that is why currency was formulated as gold....

Robin
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