No Sympathy

JPMorgan: Expect Fed to Cut to 0% in January

There are two main components of Money supply: M1 which is currency in the market where you are right on! and M2 which is M1 times the velocity that it is exchanged, The velocity is non existent thus M2 is down, thus deflation. Deflation happens when you put M1 under a mattress. ( i.e. no lending which causes deleverging.)

On Nov 20 10:59 AM dieuwer wrote:

> I will repeat this for the morons on this website: THERE IS NO DEFLATION!!!
> Yes, there is DELEVERAGING, but NO DEFLATION!!!
>
> Deflation = decrease in money supply. Well folks, that ain't happenin'.