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Gold/Mining/Energy : Gold Price Monitor
GDXJ 98.59-2.8%Nov 13 4:00 PM EST
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To: philv who wrote (5355)1/7/1998 1:13:00 PM
From: Little Joe  Read Replies (2) of 116759
 
Will one of the deflation hawks explain how we can have deflation with the money supply growing at current rates. I think it possible that the prices of products from Asian companies may go down in terms of US dollars. But this is not deflation. If the U.S. money supply is in fact growing there will be more dollars in circulation. While we may spend less on Asian or foreign goods, there will be money left over to purchase other things. I guess what I'm trying to ask is How can we have deflation with a growing money supply.

Would appreciate your insights,

Live long and prosper,

Little Joe
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