Deflation news

[Freamon]

I have no coherent argument to make as to why prices are inflation.

FTFY.

[Ruprect]

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

"I don't think, therefore I am posting on CUK"?

[AtW]

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!!!

[TimberWolf]

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.

[AtW]

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

[Freamon]

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.

[AtW]

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

[TimberWolf]

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

[Freamon]

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?

[DimPrawn]

Fire up the printing presses!

The pound in your pocket!



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

[AtW]

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

[Freamon]

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.