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

To: grusum who wrote (22846)	4/7/2013 10:50:30 AM
From: Ahda	Read Replies (1) \| Respond to of 24758

If the GDP figures are not acting as if there is growth in the economy governments try to get the people to create more businesses. The FED makes money easy to get. However banks and government are not always working in unison. The gov wants to see an increase in production in the nation and the banks do not want to see a decrease in their earnings. If Japan pumps numerous YEN into her economy she could have one huge problem. So begins the reason nations do not want inflation. More money has to go somewhere and no one can guarantee it will go into creation of business as it is impossible to force create. Get out there get something going, yet corps with adequate funds in their treasuries are not increasing the size of their companies. Surplus money goes somewhere and it is apt to end up in the stock market where you have a growth rate in the company of 6% and an increase in stock price of 30%. In this case stock prices became inflated. Monies can end up in a hedge fund and you get a super return for someone's ability to cross trade. There was and is no additional little people street business created here but stock prices went up in a major way on a minor increase in revenue. Gov makes loans easy to get to subsidize energy yet the very cost of gas is making how to create energy minus gas a very attractive business . Funds given by gov can on occasion be hap hazardly used. Fisker BK snazzy looking car but electric car should be efficient and affordable for anyone in the country. Soon that air created money is sloshing around in the economy and has created a few more jobs but the substance of the company created is not there. Now you have a few more people with increased debt and no jobs and a few other people who have because of that now defunct company requested a increase in wages and got them. The increase in wages is inflation that can spread across the entire nation which brings about deflation in the form of fewer jobs. Hard to separate inflation from deflation as first you have to fix the hole in the tire which is gov debt and no matter how you try to pump you cannot keep that tire inflated.

To: grusum who wrote (22846)	4/7/2013 4:16:40 PM
From: deeno	Read Replies (1) \| Respond to of 24758

Ahhaha said Deflation = Inflation . something is deflating as something is inflating. "can't get something for nothing". So I said that dollars are deflating and everything else (lets say stuff) is inflating. So the extrapolation seems to be that an increasing money supply influences dollars to be cheaper (deflate), making stuff inflate versus that dollar deflation. "he thinks increasing money supply IS price inflation." Well as I said, I was butting into their conversation. I think I understood his train of thought, I didnt say I agreed with it. "how can they get anything else right, as long as they believe this falsehood?" Luck. Always a pleasure.