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

To: mishedlo who wrote (31511)	6/6/2005 8:22:00 AM
From: russwinter	Read Replies (1) \| Respond to of 116555

<Are we debating value of the USD?> Absolutely, and we can debate value anyway you wish, that's fair game, in fact it's the only game. Again though Webster's definition is close to mine. I'm funny that way because it focuses the mind(s). Value: "equivalent worth in money, material, or service". Inflation: "a steady rise in the level of prices, and a resulting loss in the value of currency" <Then again are we addressing what has happened to any or all of those or are we debating what I believe is likely to happen> You might and did say that a year and half ago, last year, six months ago. Meanwhile a lot of inflation (that I predicted) is flushing through the system. I don't see anything having changed either, other than a brief four month USD defense (Dec. 2004- April, 2005), that I repeatedly (nearly daily) identified as such. That's appears over, and Uncle Ernie is back. So yes, to answer your question, I'm talking the foreseeable future, and in fact always have.

To: mishedlo who wrote (31511)	6/6/2005 8:59:41 AM
From: russwinter	Respond to of 116555

<Numerous other countries are in the same boat with the US> The value of the USD against other currencies is but just one measure of value. Here's the definition again: "equivalent worth in money, material, or service " Money is defined, as "any circulating medium or exchange, including coins, paper money, and demand deposits." Currency is defined "as a form of money that is in circulation." In fact in theory the USD could rally against all currencies, but decline against nearly every service, material, or good on the planet. That would be inflation, and would only mean inflation in other currencies is worse. The USD could appreciate against one key item, houses, and it would still be inflationary, if other goods and services are valued higher. That said, the evidence to me suggests the USD will decline against most currencies, and most goods and services. That would equate to serious inflation. Final point: when the USD is by any reasonable definition losing value against virtually every good, service, and currency on the planet, and the Ministry of Truth rectifies that reality, by saying inflation is deflation or Goldilocks, that's an Orwellian deception, or a lie. orwelltoday.com