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


To: rudyt who wrote (70539)10/26/2007 6:46:25 PM
From: Incitatus  Read Replies (1) | Respond to of 116555
 
Actually, if you use the (bogus) definition of inflation as an increase in the money supply, shouldn't disinflation mean an INCREASE in the money supply albeit at a declining rate of inflation?



To: rudyt who wrote (70539)10/27/2007 10:19:58 PM
From: mishedlo  Read Replies (2) | Respond to of 116555
 
As long as money supply keeps surging the money has to go somewhere.

Money supply is barely expanding.
Credit however is still on a tear.
Yes that does indeed have to go somewhere.

It is a mistake to assume the expansion of credit can last forever.

It can't.

Mish