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

To: John McCarthy who wrote (77764)	4/16/2008 11:21:29 AM
From: stockfiend	Read Replies (1) \| Respond to of 116555

I define inflation/deflation as the general rise or fall in prices in the intermediate and long-term, ultimately caused by the expansion and contraction of money supply and credit beyond/below the total amount of assets and productive capacity of the underlying economy.

To: John McCarthy who wrote (77764)	4/16/2008 11:49:51 AM
From: Steve Lokness	Respond to of 116555

John; Ah, the old never ending debate over the definition of deflation. That prices of basic things we need continue to rise - energy and food - is contrary to the definition you posted and suggest no deflation. a decline in general price levels, often caused by a reduction in the supply of money or credit The words often caused caught my attention in your definition as it suggest that this is not always the case. That Mish argues the importance of credit in the definition doesn't square - at least yet - with the rising prices of our basic needs. No argument here - just an observation. steve