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Non-Tech : Deflation

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To: Maurice Winn who wrote (525)8/12/2010 8:33:01 PM
From: carranza2  Read Replies (1) of 621
 
there certainly are NOT fewer coins in circulation though it might be true that they are moving more slowly than in bubble times when everyone was buying and selling and getting richer on each transaction with each transaction confirming yet again each "investor's" perspicacity in matters financial and economic.

All I can say is........

AAAARGH!

You are wrong, wrong, wrong, though you are right about velocity being down.

Velocity is one of many components.

The total stock of money - defined in many ways - is also important. In my estimation, what matters is the rate of growth.

I follow the St. Louis Fed's figures, which come out weekly.

The problem with macroeconomics is that lifting the lid on a discrete subject, like deflation, is tantamount to opening Pandora's Box. Things get complex very quickly. Why do you think it is not a social science nor a hard science but a dismal science?
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