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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.88+1.2%Nov 28 4:00 PM EST

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To: carranza2 who wrote (55653)9/30/2009 7:23:24 PM
From: TobagoJack  Read Replies (1) of 218118
 
just in in-tray

player 1:
Goldman on inflation/deflation
ftalphaville.ft.com

player 2:
regardless of all the extraneous factors cited by GS, money AMS has grown by 14,5% over the past year. so it is not correct to say 'inflation is already low'; it would be more accurate to say that it is 'already uncommonly high'.

there could of course be deflation in the future, if the central banks were to decide to stop money supply growth and let private sector deleveraging proceed unhindered.

yeah, right.

excess capacity makes it difficult for the industries in which this excess capacity exists to raise prices - but this has no bearing on money supply growth.

in historical instances of extreme inflation episodes, inflation had no problem co-existing with industrial excess capacity. this seems to have escaped GS.
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