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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 (53489)	2/11/2006 3:39:55 PM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

Russ...I'm starting to come to your way of thinking that the eventual bust results in higher interest rates. It seems like the Fed is getting more active lately with coupon and bill passes. I wonder how much monetizing is going on behind the scenes. I also wonder if monetization can occur without it showing up on the Fed's balance sheet.

To: GST who wrote (53489)	2/11/2006 8:25:40 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

You are a total wimp that refuses to answer questions because you know if you do you will look silly. That is the bottom line of it all. What a wimp you are. Not only are you a wimp you are a total complete fool. Anyone that discounts money supply is a fool. Mish

To: GST who wrote (53489)	2/11/2006 8:59:10 PM
From: LLCF	Respond to of 110194

<The money supply CAN grow in a zero inflation environment. Inflation is a persistent increase in prices in a given currency. Deflation is a persistent decline in prices in a given currency. In an open global economy with multiple currencies, inflation rates will vary from one currency to another. Money supply is one of many contributing factors -- nothing more and nothing less.> Unless you're of the 'Austrian' school: ""In short according to Mises inflation is not general rise in prices, it is simply an increase in the money stock."" mises.org So reality, as usual, is subjective to your definition. Under the Austrian definition, much of the increase in MS over the past decades (stored in accounts as 'reserves') is potentially stored inflation. Economists worried about this for decades, and finally forgot about it. Time will tell what the ramifications are... I have the sneaking feeling we'll find out over the next 5 years. dAK

To: GST who wrote (53489)	2/11/2006 11:57:02 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Inflation is a persistent increase in prices in a given currency. Since you will not answer 18 questions will you answer 5? 1) What causes a persistent increase in prices? 2) What is the exact makeup of the basket of goods used to measure this increase? 3) How do you account for quality changes in your basket? 4) How do you account for products that exist today but not yesterday? 5) Who gets to decide quality improvements? 5 simple questions. Mish