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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers
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To: loantech who wrote (62882)1/15/2009 10:08:40 AM
From: Claude Cormier  Read Replies (2) of 78418
 
Very interesting.

One thing is sure, the true definition of deflation is a decrease in money supply.

So I think that the fact that newly created money is not circulating (multiplier of 1.0 or below) does not mean deflation, although it can imply deflationary prices.

It will take time for the current increase in money supply starts to circulate and cause their effects on the economy.
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