dcb

Are We out of the Deflation Woods Yet?

please a fall of 0.1% over a year is not a risk of deflation. deflation ws ever a very big risk to begin with and in fact should be part of the normal cleansing during the business cycle. if we allwed a bit of deflation every now and then we would be in the fiscal mess we are now. the mess we are in now is a direct result of policies designed to prevent any deflation. good for banks, awful for the working folks.


On May 28 11:37 AM Jim K. wrote:

> Francis: I believe your comment is factually incorrect. Economists
> define inflation as a rise in price. Period. Rising money supply
> is not inflation even though Friedmanites believe it is so closely
> tied to inflation that it's virtually the same. It's not. Friedman's
> full formula for inflation includes both the money supply and the
> velocity of money. Perhaps we see signs of deflation at a time
> of rising money supply because of weak velocity.
>
> Incidentally, today's FT carried a report that German prices fell
> for the first time in 20 years. Consumer prices in Germany fell
> .1% last month vs. the prior year. The phenomenon was described in
> the FT as "negative inflation".

Is the U.S. Dollar Headed for a Mighty Crash? Part II

I am going to copy this and send to friends. I suggest the author send a copy to white house, and assorted congressman and senators, ron paul etc.

Feels Like February in Reverse: Time to Add to Short Positions

market very strange. looking at currencies dollar index is at resistance and it it fall s below this could mean much more rally to go esp in commodities and oil. UDN (dollar bear approaching 200 day moving avg. caution at this time appropriate. I believe NYSE being manipulated (easily so on low volumes) and you can't fight the boys.