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

To: Dan3 who wrote (77793)	4/17/2008 1:50:05 AM
From: mishedlo	Respond to of 116555

Inflation is probably best considered as the money supply growing faster than the "desired goods" supply, which pushes up the price of desirable goods (oil and food, in this case). You can believe whatever BS you want. You can believe in the tooth fairy. But It is important for you to understand that unless I state otherwise inflation is an increase in money supply and credit. So when I talk deflation that is what I am talking about. I am probably going to put a further restriction on that soon, because if the Fed prints $1T tomorrow and not a penny of it is ever borrowed (it just sits there), it will not affect a damn thing. That is likely to happen at some point. So bank credit is a far more realistic way of measuring it, it least for now. Marked to market bank credit is imploding. No question about it. I do not dispute the CPI is fill of shit and the PPI is soaring. If you want to believe those represent inflation, you are entitled to believe that. You will not be able to account for falling treasury yields without blaming the PPT, collusion, or some other nonsense, why my model accurately predicted lower yields. Of what practical use is your model? I do not care to debate my definitions. They are time as time tested as is 1+1=2. But if you want to believe 1+1=3 then that is your right. Mish