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

To: benwood who wrote (68022)	8/10/2006 5:54:43 PM
From: booyaka	Read Replies (1) \| Respond to of 110194

Dang, you demoted the average Joe from J4P to J3P in the space of 4 lines. Good thing your post was short or poor Joe might have ended up a nonentity by the time you got to the end <g>

To: benwood who wrote (68022)	8/10/2006 6:28:26 PM
From: Tommaso	Respond to of 110194

>>>Call me old fashioned, but I consider "inflation" to be monetary inflation. I consider price increases to be one possible symptom of inflation (as I just defined it), and I think it would be more accurate to call that "retail inflation." <<< Consider the word "flood." To have a flood, you have to have a lot of rain. But most people look at water running through streets or over levees and call that the flood. So are you going to call rain "flood" and then call the results "a possible symptom" of the rainfall? People see what is going on (rising prices) and call that inflation. That is why the common dictionary definition of inflation involves a rise in prices. Actually, inflation (in that sense) can occur just as well because of a shortage of things to be bought as by an excessive creation of money. That is the great mistake that a lot of Friedmanites (including me) made in the 1990s. At that time, world production of every sort of thing, including oil, increased so fast that even rising stocks of money did not result in increasing prices.