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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (66012)	6/9/2007 1:12:44 PM
From: GST	Respond to of 116555

There is no question that there is a dollar bubble -- and there is no question that is inflationary. The difficulty is not in identifying this sort of obvious inflationary pressure. The difficulty is far from the area of money supply alone. INflation in the US will not only persist in coming years -- it will accelerate. But it will not accelerate primarily due to money supply in the US. Indeed, in your make believe world of inflation where there is only money supply to consider, an economy cannot experience a sharp credit contraction and soaring inflation at the same time. Yet that is what we are already beginning to see as the US economy slows to a crawl, the dollar plunges and inflation picks up speed.