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Inflation/Deflation Debate

There seems to be some differing opinions on whether we are going to experience inflation in the coming months or continued deflation. The following link has some great graphs and a makes great argument.

http://www.cornerstoneri.com/PDFs/White/InfDeflatDebate.pdf

"Inflation/Deflation Debate
01/03/2009
John Riley
Chief Strategist

A debate is currently raging among economists about whether the US is about to plunge into a deflation like Japan in the 1990’s or go into an inflationary spiral.

There is enough evidence on either side to make a convincing case.

Some of the indicators in the table below have more importance and some have less importance in the discussion, (so you can’t score it equally!) But the one variable that trumps them all is named Bernanke. And that tips the scales towards inflation. Lots of it."



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What is "inflation"?

According to Wikipaedia:

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.[1] The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation.

As long as we allow Them to define the terms, We have lost the debate already.
But, if inflation is defined by the money supply then obviously inflation will win.
No one can increase REAL productivity as fast as the Fed can crank out fiat money.

Case closed.

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Money As Debt

http://www.youtube.com/watch?v=vVkFb26u9g8

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The Virtual Conspiracy

Thanks for the article.

Thanks for the article.

Republicae's picture

Where's

Where's GREED?

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

lmao.. Republicae I think

lmao.. Republicae I think you ran him out of town, or he has come to his sences and is out trying to scrounge every last Gold Eagle and silver eagle he can find since he has waited to purchase in the middle of the shortage! heres a good 1 for you to read!

http://www.kitco.com/ind/willie/jan052009.html

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

Republicae's picture

I miss GREED, sincerely I

I miss GREED, sincerely I do!

http://www.1776solution.blogspot.com

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

No one could accuse GREEDisBAD of waffling.

His counter-intuitive and false assertions are always short and to the point.

In my opinion, we are seeing DEFLATION in the number of GREEDisBAD posts. This is due to an ageing population ;-)

"That Socialism would be immediately practicable if an omnipotent and omniscient Deity were personally to descend to take in hand the government of human affairs is incontestable." - Ludwig Von Mises.

intersting! "When

intersting!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain