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Daal, you and I are worlds apart in understanding. I don't think I have time to explain it all again in your M's dependent system. I'm sorry. I will just say that you should look at the Fed Balance sheet, you can find it at the St. Louis Fed, its updated every thursday...you probably know...

Zdreg - with regard to historical examples, understand that I expressly stated that the context is post Bretton Woods application of quantity theory principles where there is a credit contraction. Historically, the only other similar situation is Japan's long deflation that was caused by a...

The problem with Faber's analysis, and the austrian interpretation generally, regards the reliance on an obsolete interpretation of the quantity theory of money. The principle of the quantity theory, that an increase in the supply of base money above demand leads to inflation, is an 18th...

Bearice, you keep posting these pedestrian articles as if there is something important there. This latest tree killer misses the point entirely. Greece is insolvent and that has been obvious to all serious people since last December. The economic problem that keeps flashing up is not...

How does that scene look once the nanny state is forced to take the credit card away?

This bill by Vitter is all crap. I got 94 votes becuase it has no meaning. IMF funding already happened and the issue is governed by Treaty Law not the U.S. Congress. IMF has the money and it can do whatever its own policy process allows it to do. Its like passing a law and telling the U.N...

That top 20% since 1975...you are not supposing that they are all the same people year after year are you?

Yes, we have some common ground...I guess I am not so outa here...its good to be short so I have time to write. I look at words 'deflation' and 'inflation' to really mean a monetary effect following the direction of Milton Friedman with argeeing with his whole theory. As monetary effects...

Pie, I didn't read your longer post before your last post when I reponded. I agree with much of the sentiment in your longer post with regard to how to reduce expenses and create a more stable unit of account (dollar) with price level targeting. Although, this conversation has run its course...

Pie you entirely missed the point and your non sequitor responses are useless...I'm outa here...back to enjoying my EU short, Oil short, Dow puts, TWM position...not 20 year positions mind you...but keep finding the inflation out there...furniture, cars, services, materials, wages, clouthes...

Pie, please explain how the context of a fiat currency distinguishes 1930's from the present deflation crises and the Japan Deflation...which of course is taking place in a fiat currency context. The common threads that need to be distinguished are...1. Systemic Credit Collapse, 2. Asset...

Lucky, I am not trading on a 20 year horizon, nor did I suggest that deflation would continue for 20 years...I can't predcit that and I am not trading that. It is obvious that you don't really have any substantial argument as you devolve into personal attack and projection. Read my posts...

Lucky, all you offer in argument is a flat earth view that you can see history from your window. Good luck, please get on the other side of my oil short.

Pie I suggested that the periods have in common a unique build up of excess reserves at the central bank. I would also note that all three episodes follow a profound credit collapse that threatened the entire banking system...different from other recessions. You simply say they are not...

PieZoe, Yes Japan and the U.S. have important differences and behave differently...but I can still use Japan as an example of deflaiton...Japanese deflation...A symptom of deflation is the accumulation of excess reserves in the central banking system. This has only happened three times during...

Telozo, I don't follow...inflation makes debt service cheaper...at least in the Gov't debt structure and where rates are fixed for term. So, debtors get a break by paying banks back with cheaper dollars...hard to see how the banks and long bond holder's make out. On the other hand deflation...

Pie, if you take apart the price change index's and look at the components you will see that a lot of things, besides houses are selling at prices lower than last year. If you follow Milton Friedman, he would say that inflation is always and only a monetary event, or something like that. What...

Decreased in relation to what and when? Gold is up on Euro money flight...it is discounting financial collapse not inflation. Austerity is a contraction with deleveraging deflation and the forced sale of inventories. The cost of debt is increasing...ask the Greeks...pay attention to our fund...

We are in a deflation and the Fed has been trying unsuccessfully to reflate; unfortunately for the Fed they don't really understand deflation as well they think they do. What they don't understand, and what some on this thread don't understand, is that deleveraging is deflation. Base money...

Too bad Lucky, we are having deflation.