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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: ahhaha who wrote (22839)4/6/2013 10:51:58 PM
From: deenoRead Replies (1) | Respond to of 24758
 
"How does money pumping CAUSE deflation?

deflation = inflation. Whenever something of value inflates something else deflates, and vice versa. Can't get something for nothing."

Im not much for formulas, but isn't the above point the Dollars (or the pumping stuff) IS deflating, versus whatever you feel like measuring, or his supposition above, virtually everything else? So your both correct. or in effect agree.

"If the pumped money was used wouldn't it contribute to conditions that cause inflation?

Pumped money causes money's buying power to deflate. "

so your saying the same thing again.

"During the inflation of the '70s (now they really knew how to inflate) real money supply declined. Declining money supply is attended by idleness"

in looking at those charts of the 70's pumping seemed to me to be a leading indicator to inflation or devalued dollars (take your choice).

"Raising interest rates doesn't necessarily cause money supply to decline"

Well I might agree with this, but other than 1994 Most would not have much experience in the matter.

Its all a matter of how each of you defines what inflation/deflation actually is.