Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: UncleBigs who wrote (64101)	6/19/2006 2:31:07 PM
From: shades	Respond to of 110194

Money supply all around the world is increasing at a much faster rate than u.s. dollar. Yah but perhaps that money inflation in those areas is not so disastrous as more socialist farmers become capitalists in thier rapid industrialization - that still does not take away from the fact that we have politicos that have never found a piece of pork they didn't love. Its like saying our brick house is better than all thier straw houses they are building - what if the nuclear bomb only falls on the brick house? Doesn't matter they were only building straw houses - we are vaporized and they laugh no? Here was an older article comparing types of deflation. These guys say there is good deflation and bad deflation - not defined in the way mish defines inflation/deflation though - they focus on prices. rieti.go.jp In reality, both demand factors and supply factors are at work at the same time, but the pattern of economic performance differs depending on which has the greater impact. Specifically, if demand factors have greater influence, the end product is "bad deflation," where both output and prices fall. But when supply side factors dominate, the result is "good deflation," where prices fall but output grows. Judging from the fact that the Chinese economy is growing fast while the Japanese economy is not, Japan seems to be suffering from "bad deflation" caused by dwindling demand, whereas China may be experiencing "good deflation" brought about by an increase in supply capacity. Thus if we attribute deflation in China mainly to factors on the supply side, rather than the demand side, we can solve the puzzle of why (price) deflation and high economic growth can occur simultaneously.