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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (50694)	1/21/2006 11:59:53 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

The terms inflation and deflation have zero meaning unless they include reference to prices. If you think every addition to money supply is inflation, period, then you are nuts. Same thing for deflation -- a contraction of money supply does not constitute deflation. That is simply 100% false. If we can not agree on a definition there is simply no debate. Period. I am willing to admit a relationship to prices, but prices are secondary. To you prices are primary. Hell they are not only primary they are the ONLY THING! I think it is silly to think that price increase or decreases = inflation or deflation. Furthermore I think you will get pounded by your own definition. Home prices just fell 25% (in some locales) and gasoline prices fell 33% since August. Am I screaming deflation because of that? No! Why - Because 1) I am consistent 2) I want it to be sustained 3) I want to see credit and money numbers over a longer timeframe Yet every freaking uptick in any prices people scream INFLATION. That to me is nuts. Your definition ignores the stock market and it ignores price increases/decreases caused by something other than an increase in money supply even though inflation an money supply are RELATED BY DEFINITION! dictionary.reference.com A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services. As I said that cart is before the horse but even if one accepts that definition as is you are wrong. You are simply wrong either way. Then again if you refuse to accept that definition it is pointless to argue. But it is beyond silly to call one NUTS as you did me for believing that money supply and price increases are related when I can point to a clear definition that says otherwise. In fact it nuts to call my position nuts. Perhaps you should write mises and call them nuts too. Perhaps you should tell dictionary.com they are nuts. Perhaps in fact we are all nuts but you. I have pointed out a dozen times why the cart is before the horse but obviously the only freaking thing that matters to you is prices and given your ideal world there is no horse and there is no cart. When housing prices crash, please do not be a hypocrite. Please tell the board you see deflation, even if I do not by my stricter definition. Mish