Mon 2010-09-20 10:12 EDT

Mish's Global Economic Trend Analysis: Fiat World Mathematical Model

...Conditions today are essentially the same as during the great depression...It is the destruction of credit, coupled with the fact that what the Fed is printing is not even being lent that matters...we are in deflation based on the following definitions: Inflation is a net expansion of money and credit. Deflation is a net contraction of money and credit. In both definitions, credit needs to be marked to market...the mark to market value of credit is contracting faster than base money is rising...The Fed tries to hide the contraction in the market value of bank credit by its Don't Ask, Don't Sell policy...The credit bubble that just popped exceeded that preceding the great depression, not just in the US but worldwide. Thus, it is unrealistic to expect the deflationary bust to be anything other than the biggest bust in history. Those looking for hyperinflation or even strong inflation in light of the above, are simply looking at the wrong model...

Fiat World Mathematical Model; Mish's Global Economic Trend Analysis.

Mish's Global Economic Trend Analysis Wed 2009-11-25 12:05 EST

What Is Inflation and How Does One Measure It?

Michael Shedlock

...Inflation is a net expansion of money supply and credit, where credit is marked to market. Deflation is the opposite: a net contraction of money supply and credit, where credit is marked to market...Credit (and credit problems) dwarf monetary concerns at the present...I still expect the US to slip in and out of deflation and recession for years to come just as happened in Japan...banks aren't lending, consumer credit is contracting, credit writeoffs are likely to exceed monetary printing, and symptoms like treasury yields are in generally in agreement...To bail out the banks' poor bets on Dot-Com companies and Latin America in 2001-2002, Greenspan purposely ignited a credit bubble that led to the mother of all housing crashes. In response to the housing bust, the Fed refused to let failed banks go out of business and is attempting to force another credit bubble...However, this is the end of the line. Housing was the bubble of last resort, nothing can come close to the number of jobs created by the global housing bubble. Further attempts to reflate will do nothing but create a currency crisis, crash the economy, and add to future liabilities that cannot be paid back.

Inflation; measured; Mish's Global Economic Trend Analysis.

Thu 2007-11-01 00:00 EDT

Mish's Global Economic Trend Analysis: Inflation: What the heck is it?

2006-02-02; Frank Shostak; inflation best defined as net expansion of money supply and credit

heck; Inflation; Mish's Global Economic Trend Analysis.