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

To: Think4Yourself who wrote (98115)	5/31/2009 9:37:42 AM
From: orkrious	Respond to of 116555

We have a very interesting scenario developing, with both inflationary and deflationary forces at work...Not sure how this will all end but pretty sure it won't be pretty. It isn't going to end. It's going to continue. As many on SI have been saying for a long time, it's going to be inflation in what people have to buy, deflation in things people don't need (especially those that went up in price as a result of the credit bubble), plus wages.

To: Think4Yourself who wrote (98115)	5/31/2009 1:41:03 PM
From: bull_dozer	Read Replies (1) \| Respond to of 116555

> Looks like we might soon have the answer as to whether we see deflation or inflation. We have a very interesting scenario developing, with both inflationary and deflationary forces at work. Inflationary forces are driving up the prices of just about everything as people try to get away from the USD due to all the reckless printing and spending. At the same time we have deflationary forces in that people have no control over wages, and are losing jobs en-masse. Liquidity drowns meaning of 'inflation' The conventional terms of inflation and deflation are no longer adequate for describing the overall monetary effect of excess liquidity recently released by the US Federal Reserve, the nation's central bank, to deal with the year-long credit crunch. This is because the approach adopted by the Treasury and the Fed to deal with a financial crisis of unsustainable debt created by excess liquidity is to inject more liquidity in the form of both new public debt and newly created money into the economy and to channel it to debt-laden institutions to reflate a burst debt-driven asset price bubble. atimes.com The message is catching Message 25682781