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

To: mishedlo who wrote (21886)	1/20/2005 9:26:24 PM
From: Tommaso	Read Replies (3) \| Respond to of 116555

>>>Therefore it seems silly to have a definition of deflation that requires those to drop.<<<< The word "deflation" as used in the past has always implied a general decline of prices of all goods and commodities, real estate, wages--everything. That occurred in the context of a hard currency. In the dpeths of the Depression, sirloin steak was 15 cents a pound and you could hire someone to rake leaves off your lawn at 15 cents an hour, or at least these were what my grandparents paid in 1933. That's deflation. The decline of a housing bubble and a stock market bubble is not general deflation. I think it is rather simplistic to talk about "deflation" in the absence of declines of prices for commodities and labor. Real deflation is impossible in the absence of a hard currency.