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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (94174)	5/12/2008 7:46:31 PM
From: benwood	Read Replies (3) \| Respond to of 110194

As I've said before, it's irrelevant how one uses the actual English word "inflation." You and Mish have been arguing about that for many years now. The important thing is to use the some known definition if you want to understand each other. My brain is ordinary for the most part, yet simultaneously I realize you mean "inflation" as 'prices going up' and Mish means "inflation" as 'growth in monetary supply.' It's not hard to understand both of you knowing that you use the word differently. Von Mises or whom ever should have coined a new word so we could all get along <g> The names aren't important to me; it's what happens when monetary or retail inflation manifests itself. I believe inflation the money supply can lead to retail inflation (as can other things, e.g. a debt bubble) so I care about monetary growth, debt growth, fractional reserves, here in the US and elsewhere. Just stuff to plug into my brain to see if some brilliant ideas pop out beyond getting in a food line. The thing I find important right now is that the world is awash in a devaluing dollar printed by a gov't that is out of touch, out of control, and nearly out of time. And at this particular point in time, a lot of out trading partners have amassed huge war chests of these dollars and don't like seeing them go down in value, and at the same time, recognize that global scarcity is occurring and so what better use to put those sky high piles of greenbacks than to secure food and energy before it is too late. That rushing in to buy something before the money has any further chance of losing value is of course a high inflation or hyper-inflation problem. Somebody (Noland?) wrote recently that oil averaged $26 a bbl for the ten years ending in 2005, and now it is $125+ just three years later. Stunning. I think all these events are unfolding as a consequence of bubble economics. There will be more waves of distortion ripping through US and world economies before stability returns in say 5 to 10 more years.