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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (67514)11/29/2006 1:06:06 PM
From: GSTRead Replies (2) | Respond to of 306849
 
Hi Mish -- I don't understand cause and effect? LOL. You don't even know what the effect is let alone the cause. The effect, inflation, is persistent changes in price levels and the causes are many -- money supply being but one of them.

This is the line from your post that cracks me up the most:

"you clearly do not understand that prices can rise for all kinds of reasons not related to money supply changes"

You are truly a funny guy Mish. You can't fathom the idea that inflation is about prices and then you want to lecture me on the fact that money supply is not the only reason for price changes. You conclude that money supply is, inflation because there are other things that explain price changes -- so price changes can't be inflation. This is the dumbest stuff I have read in a long time.



To: mishedlo who wrote (67514)11/29/2006 6:53:34 PM
From: Jim McMannisRead Replies (1) | Respond to of 306849
 
RE:"The fantasy world you live in that sees inflation as prices as opposed to inflation as printing money"

The second one leads to the first one as the new money flows into higher prices.
Tax cuts also create money which ends up causing prices to go up.
Easy "borrowed" money can have the same effect but the results may be even more disasterous as someone will end up on the hook and class divisions will increase even more. The rich, the poor. The haves and have nots.