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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 (75223)	12/10/2006 9:47:52 PM
From: pogohere	Read Replies (1) \| Respond to of 110194

Thanks. You have described a number of reasons why prices increase and decrease, among them supply/demand, labor availability. And you choose to deal with this issue under the rubric of inflation/deflation. No one seems to have disputed that these are factors in the setting of prices, but some of us believe that the notions of inflation/deflation are not fully addressed as merely the rise and fall of prices. I believe there is a legitimate role for the analysis of the impacts on price levels of savings, money creation and credit creation, aside from the factors you consider. And I believe that the discussion of inflation/deflation becomes much more meaningful when described that way. I don't find the adherents to the Austrian school of economics to be a fringe element, wherein the relationship of savings to credit supply plays a large role in the analysis of where the price level is headed. You seem to feel that it is a fringe element and don't countenance that point of view. You and I disagree about this. I think that's unfortunate because you are a rather keen observer of what's happening in the world I think you could contribute to a discussion of the role of savings and money/credit creation to the price level in conjunction with the elements cited above (supply/demand, labor availability). I would be interested to see you take on those elements (savings and money/credit creation) as they effect price levels and share your thoughts about them in particular. However, I understand you to be saying that is not worth your while under any circumstances. So be it. Thanks again.

To: GST who wrote (75223)	12/11/2006 11:21:43 AM
From: John Vosilla	Respond to of 110194

'What is less obvious is that China can no longer keep up with demand as factories in the south cannot attract and retain enough workers. We are on the cusp of increased inflation, RMB appreciation and tighter terms of credit, even as our economy slows -- indeed in part because our economy is slowing.' I agree though I don't see a shortage of factory workers in China as being a huge driver in tighter credit conditions in the US. Perhaps additional inflationary pressure. Much higher rates do make asset values worth somewhat less and thus the collateral less safe to the financial institutions that make loans.. On your other point yes the sooner we can get away from the mockery of too much time and effort even disputing where we are on the inflation curve today the more interesting this board can become..