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To: BGR who wrote (66412)	10/5/1999 10:45:00 AM
From: Cynic 2005	Read Replies (1) \| Respond to of 86076

<<The Return of Depression Economics>> You are back. So is depression to this thread. Who needs that book? -g-

To: BGR who wrote (66412)	10/5/1999 10:54:00 AM
From: pater tenebrarum	Read Replies (2) \| Respond to of 86076

BGR, oh yes, an increase of 200% in the last 10 years IS. it far outstrips economic growth during that time. and it is obvious that the inflationary effects of this have been channeled into asset prices...stocks, bonds and real estate. the increase in money supply is the CLASSICAL measure of inflation, since by definition this is where inflation is rooted. higher prices are merely the effect - the cause is still the burgeoning money supply. just because inflation has been confined to asset prices does not mean it is absent.

To: BGR who wrote (66412)	10/5/1999 11:21:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 86076

BGR, before the rise of the welfare state the classical economists defined inflation as an increase in the supply of money. The Austrian school of economics defines inflation as an increase in the supply of money beyond the needs of economic activity and the supply of savings. Product price inflation is just one possible outcome of inflation as defined by the Austrian school - it may also manifest itself in the financial markets and balance of trade. The political economists who do not see inflation are repeating the mistakes of the US in the 20s. There is rampant inflation which is not captured by the monetary aggregates due to the unprecedented role of the financial markets in supplying credit. In 1929 there was two dollars in debt created for every dollar of GDP growth we have recently hit FIVE dollars of debt growth for every dollar of GDP growth. It is important to remember that the financial markets are beyond the control of the FED and offer the opportunity for extreme leverage. If you are interested in examining an alternative view to the nonsense espoused by today's political economists read " Debt and Delusion" by Peter Warburton available at AMZON -UK I just noticed Former Fed governor Robert Heller will be on CNBS at 11:20 - he wrote an op-ed piece in the WSJ suggesting that the Fed should intervene in the stock market at critical times via futures. ho ho ho Mike