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Deflation news

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    Deflation news

    Real deflation this time.

    BOE: Jan Mortgage Approvals Edge Up In January, M4 Slumps | iMarketNews.com

    The BOE also issued M4 broad money data, which showed that on an 12-month annualised rate, money growth fell to its lowest level since the series began. M4 rose 0.8% at a monthly rate and fell 1.7% at an annualised rate in January. M4 lending rose 0.2% on the month to stand down 3.7% on the year.
    Forget about this consumer prices nonsense - the monetary base is falling for the first time in decades.
    "A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon

    #2
    It's not deflation (which is negative change in prices of goods and services) - some bulltulip measure of money supply gone down because banks use printed money to inflate commodity market, more money printing needed

    Comment


      #3
      Fire up the printing presses!

      The pound in your pocket!



      Gold Climbs Close to Record on Libyan Turmoil; Silver Gains - Businessweek

      Comment


        #4
        Originally posted by AtW View Post
        It's not deflation (which is negative change in prices of goods and services) - some bulltulip measure of money supply gone down because banks use printed money to inflate commodity market, more money printing needed
        Deflation has nothing to do with prices. Please read: Mish's Global Economic Trend Analysis: Inflation: What the heck is it?
        "A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon

        Comment


          #5
          I have a feeling discussing economics is no more productive than spouting philosophy.

          Comment


            #6
            Originally posted by Freamon View Post
            Deflation has nothing to do with prices. Please read: Mish's Global Economic Trend Analysis: Inflation: What the heck is it?
            From your link:

            ------------------------------------
            Commonly Used Definitions

            Decline in purchasing power of the currency held
            Rising prices in general (essentially the same as #1 although some might disagree)
            Rising consumer prices (CPI)
            Rising producer prices (PPI)

            Rising prices due to expansion of money supply
            Rising prices due to expansion of money supply and credit
            Expansion of money supply
            Expansion of money supply and credit
            ------------------------------------

            That's inflation, deflation is the opposite.

            HTH

            Comment


              #7
              Originally posted by AtW View Post
              From your link:

              ------------------------------------
              Commonly Used Definitions

              Decline in purchasing power of the currency held
              Rising prices in general (essentially the same as #1 although some might disagree)
              Rising consumer prices (CPI)
              Rising producer prices (PPI)

              Rising prices due to expansion of money supply
              Rising prices due to expansion of money supply and credit
              Expansion of money supply
              Expansion of money supply and credit
              ------------------------------------

              That's inflation, deflation is the opposite.

              HTH
              If you read the rest of it he explains exactly why the definitions you've bolded are wrong. But I guess you haven't got a coherent argument against what is said in the rest of the link, otherwise you would have posted it above.

              HTH. HAND.
              "A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon

              Comment


                #8
                Originally posted by Freamon View Post
                If you read the rest of it he explains exactly why the definitions you've bolded are wrong. But I guess you haven't got a coherent argument against what is said in the rest of the link, otherwise you would have posted it above. HTH. HAND.
                Quiet, some Mish on the Internet redefines what inflation is - apparently it's not increase in prices, he must be working in Treasury

                Comment


                  #9
                  Originally posted by AtW View Post
                  Quiet, some Mish on the Internet redefines what inflation is - apparently it's not increase in prices, he must be working in Treasury
                  You may be on to something there. Rumours are that the Treasury don't give a flip about price 'inflation', the only thing that concerns them is wage inflation.

                  Comment


                    #10
                    Originally posted by TimberWolf View Post
                    the only thing that concerns them is wage inflation.
                    Indeed. Just imagine if everyone could afford to buy Porsche or Ferrari - there would be waiting list stretching from now till next millenia!!!

                    Comment

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