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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 (53869)	2/15/2006 12:39:43 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Don't be a big dummy Mike -- prices DO rise for reasons other than money supply. Perhaps you are familiar with the following expression -- supply and demand. I might also add if one is targeting prices and some components (say energy are rising like mad) yet other are falling, exactly how does one go about setting interest rates to target prices? Just what is your basket and how do you guarantee it is representative? You keep digging yourself deeper and deeper in a hole, while offering zero answers. Please add those to the list of questions that you no doubt will refuse to answer. Mish

To: GST who wrote (53869)	2/15/2006 12:43:58 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 110194

- The supply of some things increases -- and an increase in the supply of goods combined with an increase in money supply does nothing to increase the price. True in the short term.. false in the long term. Read my post again. Things are destroyed or depleted over the long term, and assuming an increase of the money supply, the things that still exist at the end must see their prices increase. - On the other hand, there are things where the supply can decrease and the price as a result can go up if demand remains high -- and all this can happen while there is a decrease in money supply. True. But you do not get a general increase in the level of prices. You get only a increase in prices in one or a few sectors and a decrease in prices in other sectors. Overall prices deflation if the money supply decrease. -- but more or less sunshine in no way dictates in any direct way how much food will be grown. Everything being equal, yes more sunshine will grow more food in general. No sunshine will grow no food. -- Food is what you eat. Inflation is the price you pay. The sun come first, then the food, then the price we pay for it.