14 replies to this topic

[greenie]

Deflation ? - Are you from Mars ??

Webster's says, "Inflation is an increase in the volume of money and credit relative to available goods," and "Deflation is a contraction in the volume of money and credit relative to available goods."

Which one are you seeing? What are your measures? Just curious....

[Regent]

Of course, the USD just hit a new 52 week low. That could be largely why GOLD is thru the roof.

[NAV]

Deflation ? - Are you from Mars ??

Webster's says, "Inflation is an increase in the volume of money and credit relative to available goods," and "Deflation is a contraction in the volume of money and credit relative to available goods."

Which one are you seeing? What are your measures? Just curious....

Inflation is an increase in the volume of money and credit relative to available goods - That's what i am seeing, living and breathing (at a acutely heightened scale over the last few years).

Edited by NAV, 10 September 2007 - 09:22 PM.

[greenie]

I do not care about what you are breathing or smoking for last so many years. This chart shows the amount of total outstanding credit in the commercial paper market (debt of shortest maturity). Do you see anything unusual here in last few weeks?

[NAV]

I do not care about what you are breathing or smoking for last so many years. This chart shows the amount of total outstanding credit in the commercial paper market (debt of shortest maturity). Do you see anything unusual here in last few weeks?

As for the CP market, the problem is again in the low quality paper and not the high quality CP market. Anyway, at this point, it's a temporary money market problem, unless proven otherwise. It does not tell you anything about the long term deflationary consequeces, unless one extrapolates into what he/she wishes.


Bankers in London are warning of the worst crisis in global money markets in 20 years as more than $110 billion worth of Commercial Paper is set to mature this week, according to the London Times.

Greenspan warns of 1987 style panic

Every beaurocrat out there warns of impending recesssion.

Jim cramer knows how deep the problem is.

Steve Forbes urges Fed for 100 basis rate cut.

Paulson Unsurprised by Surprising Economic Weakness.


LOL. We are in a unique environment where everyone from a average permabear to top bankers to beaurocrats to Fed governors to business leaders know about the impending crises. I distinctly remember the situation in 2001, when our business leader to politicians to beaurocrats were all assuring that all was well, while the reality was grim and dark. It's exactly the opposite situation today. Let the drama go on....

Edited by NAV, 11 September 2007 - 12:17 AM.