tag:blogger.com,1999:blog-7400390336523591685.post4235736920271717825..comments2023-08-24T08:56:06.522-05:00Comments on Rhymes With Clown: Monetary Unkown UnknownsJeremy R. Shownhttp://www.blogger.com/profile/11303377672028774152noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7400390336523591685.post-79076512025982322012010-07-27T00:04:26.939-05:002010-07-27T00:04:26.939-05:00Entrenched deflation does not clear markets, it de...Entrenched deflation does not clear markets, it destroys them. <br /><br />"....if the supply of money has nothing to do with anything...."<br /><br />Who ever said that the money supply has nothing to do with anything?J. Struppnoreply@blogger.comtag:blogger.com,1999:blog-7400390336523591685.post-69118274129033859842010-07-25T23:25:51.564-05:002010-07-25T23:25:51.564-05:00It is precisely what we think it is. Highly expans...It is precisely what we think it is. Highly expansionary, as always. <br /><br />I still believe any M numbers out of the Fed are spurious. We know their balance sheet expanded astronomically from 2008 to the present time, with most of the money going to banks. The fact that these banks played it straight and refused to lend is the only thing between us and hyperinflation. <br /><br />Add zero interest rates, asset manipulation, and any other manner of foul play, and there you have it. <br /><br />That being said, I pray for deflation. Recovery cannot return until prices are cleared once again. <br /><br /><br />That being said, if the supply of money has nothing to do with anything - and prices magically rise due to greed or whatever the bugaboo of the day is, (as our friends the Keynesians and Monetarists will tell us, to no avail) then how does one account for hyperinflation in the first place?Dnoreply@blogger.com