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

To: russwinter who wrote (75884)	12/17/2006 8:44:16 PM
From: NOW	Read Replies (3) \| Respond to of 110194

<It's because we've had Mish on here for several years, preaching this crap> that seems a bit uncalled for to say the least...

To: russwinter who wrote (75884)	12/18/2006 1:33:55 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Think too many people on here believe the bather about bad economies being deflationary. It's because we've had Mish on here for several years, preaching this crap. That simply isn't the case, and history is full of examples, especially when central banks panic. The fact that JSM house price is down, may or may not be deflationary or inflationary, depends a lot on the monetary response, and people's reaction and confidence in their currency. Russ that was pure BS. Where did I say that "bad economies were deflationary"? Furthermore where did I define deflation as being anything but a contraction in credit and money. When asked to find an economist supporting my position I pointed to Kasriel. Before that this board has been a totally useless bastion of sniping for at least two months with GST and John and others carrying on some sort of personal agenda. This in fact continued in spite of me going out of my way to find things I agreed with from both John and GST and in spite of public and private emails to John offering an apology and asking the nonsense to stop. Then GST continues to bitch and moan like all trolls do. The latest challenge was to find another economist that supported my views and I found 4 more who are convinced that "Inflation is a monetary thing" that somehow GST twisted into a statement that "inflation was a price thing". Oddly enough everyone here including you bitch and moan about coupon passes and repos and M3 etc etc etc. Why is that? Why why why? Could it just be that inflation is a monetary thing? That inflation is about increases in money supply and credit? Can it be that prices are also hard if not impossible to measure? Now even you go on making statements that prices are rising and there is simply no way to support that position on the PPI for a long time and the CPI for 3 months. You can hide under the fact that the CPI is manipulated but you can not hide under falling home prices, falling prices at walmart, falling prices on copper, falling gasoline prices, falling lumber prices. Take a look at charts of lumber and copper. Of course you can pull the David Lereah trick and moan that prices are still up yoy or whatever ignoring the last 6 months. The KEY thing to note (I believe) is that money expansion is no longer going into price increases hardly anywhere. Instead we see money going purely into speculation (leveraged buyouts, mergers at insane prices, etc etc etc). That to me that is telling but it is hard to have a rational discussion on it when every attempt to do so is met with statements that prices are soaring(which they most assuredly are not), and deflation is a stupid idea. Well I see this credit expansion going 100% into financial speculation just as it did in 1929 and the parallels are striking. The parallels to the 70's are practically nonexistent. Anyway if you want to toss me into the crowd that is "preaching crap" then so be it. But at least have the decency to state my position correctly because my position certainly is not "bad economies are deflationary". I am to now expect you to join GST and John as to distorting my position at every chance? BTW - That is exactly why this board turned to crap. People (perhaps on purpose keep distorting my position) so I have to explain it over and over and over. Mish