CrazyIvan

Goldman, Morgan's CDS-Prime Broker Plan: Why I'm Skeptical

Actually, it is a positive-feedback loop that has negative consequences.
Positive feedback amplifies the initial perturbation -- as in nuclear fission.

Oil/Gold Arbitrage Opportunity

I would assume you are doing the CPI-M1 correlation using the actual levels of the two time series, in which case there is a strong time trend in
both series causing a lot of the correlation. It would be more accurate to correlate the percentage changes in the two time series.

Also I don't see any support for the inflation-unemployment rate trade-off. Given your correlation coefficient, only 1.6 percent of the variation in unemplyment is explained by changes in the CPI.