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

To: mishedlo who wrote (72434)	12/16/2007 10:56:22 PM
From: Secret_Agent_Man	Respond to of 116555

I do see deflation in assets vis-a-vis RE/ as far as debt contraction i thought you inflate your way out of debt and that the monetization of debt is what the fed is doing by in fact (creating money) some what (1/2-3/4 tril globally since august?) inflation and of course buying the worthless junk from banksters thereby removing that debt from their books but whom is paying for this and how? or do I have it all wrong?

To: mishedlo who wrote (72434)	12/17/2007 12:30:54 AM
From: loantech	Respond to of 116555

Well I know my wages are not keeping up with cost of living increases but thankfully my debt load is quite low in comparison to my amount of savings. Tom

To: mishedlo who wrote (72434)	12/17/2007 11:29:55 AM
From: Steve Lokness	Read Replies (1) \| Respond to of 116555

Mish; Deflation is about contraction in debt and asset prices Yup, I understand this as you define it and accept this definition. But where do commodity prices fit in? Wheat, Oats, Sugar are way up and now .....to my surprise.......even lumber has come way off its bottom. If you use asset prices (and debt) in your definition of deflation, don't you also then have to use expansion in debt and rising housing asset prices in the inflation index? Since the only significant asset to many many people are their homes - they have then experienced huge inflationary numbers the past few years. If my home has gone up 300% in a couple of years, what does it mean if it falls 2%? As to "contraction of debt", does that also apply to the federal governments debt? Seems to me that if we bail out homeowners with cash that is charged on the governments credit card, that that would be a expansion of debt? Trying to get my mind around what is coming next - and as always respect your opinion. steve