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

To: mishedlo who wrote (75285)	12/11/2006 1:35:41 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

But you have to admit the fact that there are 2 ways the Fed can inject money into economy: 1.Through creation of new credit 2.Through elimination of credit: a)monetization b)bailout/injection So even if there is no willingness to take on more debt, the money can still be injected into economy as Kasriel said, by direct deposits into private accounts. Bernanke has said that they will use unconventional methods, no matter that such policy creates more damage than it fixes in the long run. Based on this fact, the money supply is guaranteed to grow, no matter how bad underlying deflation forces will be.

To: mishedlo who wrote (75285)	12/11/2006 2:10:02 PM
From: GST	Respond to of 110194

ROTFLMAO From what you 'quoted' -- "Alternatively, if there were a run on the dollar in the foreign exchange market, price inflation could spike up..." You are making a farce of this man's views by trying to pass him off as a person who agrees with you that money supply is inflation. In the above statement he even uses the term price inflation. If inflation can only be caused by the central bank there is no way in the world you can reconcile that with the statement quoted above in which actors in the foreign exchange market are clearly identified as a potential source of inflation -- and I do mean inflation. This guy provides zero support for your definition of inflation and in point of fact indrectly contradicts your core position. Message 23091210