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Message: some more deflation points

some more deflation points

posted on Dec 12, 2008 03:43AM

familiar voices:

http://www.huffingtonpost.com/nourie...

http://www.financialsense.com/Market...

I'll just highlight one point Shedlock makes which I believe is missed by most inflationists:

"And with the rapid destruction of credit with bank losses increasingly being hidden in level 3 assets, it is going to take massive stimulus just to stay in one place. Simply put, credit destruction on a marked to market basis has without a doubt outpaced growth in base money supply."

and finally, a look at whether the monetary base is expanding as fast as is claimed, and the significance of falling money velocity:

http://www.ritholtz.com/blog/2008/12...

ebear



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