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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: zonder who wrote (13657)10/19/2004 12:03:17 PM
From: dpl  Read Replies (1) | Respond to of 116555
 
Let me say it this way.If we get the classic definition of deflation,a contraction of credit,we will get "price deflation" in everything along with a huge decline in economic activity.

Later as we(USA) need trillions of dollars the Fed will try to print them.At that point the CPI will rise BUT the assets that fed the credit bubble will still be in a bear market.

David



To: zonder who wrote (13657)10/19/2004 1:48:41 PM
From: mishedlo  Read Replies (1) | Respond to of 116555
 
That is, we are talking about "inflation" or "deflation", we are talking about the economy as a whole, and simultaneous "inflation" and "deflation" is just not possible.

Sure it is.
The PPI can be rising and the CPI falling.
There is no reason why this is not possible.

Mish