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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?


To: SliderOnTheBlack who wrote (8062)2/26/2008 9:46:54 AM
From: RonMerks  Respond to of 50182
 
M1, M2, M3, and all those other M charts's pale in comparison to two other charts that tell me all I want to know about inflation or deflation. And those two charts are the US Dollar and Gold.

I've never understood the debate all over the internet on blogs and here on Silicon Investor about inflation vs. deflation.

Here's the only M chart I need to read.

M as in Gold is Money!



In just the last 6 months- gold up big and the dollar down big.

Ron



To: SliderOnTheBlack who wrote (8062)2/26/2008 10:45:49 AM
From: Nihontochicken  Respond to of 50182
 
Okay, it appears that the change is not in what the Fed is actually doing, but what it says (or says no more) that it's doing. In terms of what it's actually doing, SOS, replay of 1995-2000:

nowandfutures.com

As long as the money supply is inflated at double digit rates, one can expect "real stuff" to appreciate in dollar terms, and perhaps maintain value, or at least lose value less fast than the $USD:

nowandfutures.com

"Meet the new boss, same as the old boss."

NC

P.S. - If one is convinced that the result of swelling money supply will be the triumph of inflation over the deflationary credit bust, then the next question is, how much inflation? Will this be a 70s style episode that the financial system and economy will eventually muddle through, albeit painfully, or will the wheels come off this time and the entire financial system and $USDollar collapse? If the latter, what should one do, re-stock the 60s bomb shelter?