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

To: Mike Johnston who wrote (64376)	7/6/2006 10:18:11 AM
From: GraceZ	Respond to of 110194

In fact, excess money creation, if continued, will over time reverse the trend that you write about, by removing the incentives to save, work, invest and innovate, the very things that are drivers of that trend. The trend operates outside of monetary values and prices, that was my point. For most people it matters little whether a loaf of bread costs $.50 or $5.00 if they can pay for that bread with less of their time and energy at $5.00 than at $.50. You keep writing stuff that implies we're somewhere near hyperinflation and the serious dislocations that occur in a hyperinflation but we aren't anywhere close. We aren't even yet in a period with an accelerating trend due to the fact that a very large population has decided to join our labor force. Nor are we anywhere close to some serious monetary/credit contraction as the housing predictions you gave would imply.