Is inflation always and everywhere a monetary thing?

[<SLV>]

Good Read:

Is Inflation Always and Everywhere a Monetary Phenomenon?

Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon.” Most people parrot Friedman because the quote sounds good. The actual quote is: “Inflation…

mishtalk.com

Is Inflation Always and Everywhere a Monetary Phenomenon? Think carefully about my question and the measures you use to define inflation.

Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon."

Most people parrot Friedman because the quote sounds good.

The actual quote is: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”

If you insist that increases in money supply constitute inflation, then you must also insist that we are in a period of deflation right now.

Does it feel like it?

I have been waiting for this moment for a long time just to ask these questions....

 

[pmbug]

...
Does it feel like it?
...

Relative to what?

Go from 0 to 100 in 3 seconds and you feel the acceleration. Take the foot off the gas and you will immediately start decelerating, but you may not notice it too much as your hands are white knuckled on the steering wheel.

 

[<SLV>]

Forget about M2, for now. Watch TCMDO instead. If credit collapses, the economy and the Fed is in deep trouble.

By the way, please note M2 money supply is $21.4 trillion while total credit owed TCMDO is $92.2 trillion.

Will these converge? Which way, how, and when?

 

[jrog100]

I dont think the fiat currency system will work without inflation. That's why we feel the stock market "increases" in value. agree?

 

[<SLV>]

I dont think the fiat currency system will work without inflation. That's why we feel the stock market "increases" in value. agree?

No. A companies' stock price increases proportionately to its success in sales growth. Theoretically.

 

[Joe King]

No. A companies' stock price increases proportionately to its success in sales growth. Theoretically.

Or buyers simply bid up the stock price due to fomo. Ie: Peloton would be a good recent example.

 

[jrog100]

No. A companies' stock price increases proportionately to its success in sales growth. Theoretically.

Like the dot com bubble in 2001? .

 

[Casey Jones]

Good Read:

Is Inflation Always and Everywhere a Monetary Phenomenon?

Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon.” Most people parrot Friedman because the quote sounds good. The actual quote is: “Inflation…

mishtalk.com

Is Inflation Always and Everywhere a Monetary Phenomenon? Think carefully about my question and the measures you use to define inflation.

Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon."

Most people parrot Friedman because the quote sounds good.

The actual quote is: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”

If you insist that increases in money supply constitute inflation, then you must also insist that we are in a period of deflation right now.

Does it feel like it?

I have been waiting for this moment for a long time just to ask these questions....

Yes.

It is.

By definition.

Because the social-engineers and money-printers CHANGED DEFINITIONS without saying so...just as they have with certain other, uh, medical therapies...doesn't mean the New Definition is correct.

No. It's a deception.

Inflation IS inflating the supply of currency. Without wealth to back the New Money.

What is happening in the goods markets...is not inflation. It's the result of inflation.

The price wobble we have seen a little of, and will see more of...is not deflation; it's the result of an unstable market and repricing of goods, reflecting new or perceived-new value to the currency, and new demand baselines. Including, in some cases, destruction of demand for some goods.

 

[Curly]

I'm paying more for just about everything except mortgage and gas.

Gold bought @370 and silver @7 keeps me above water. For now.

War will make it all irrelevent.

 

[Goldhedge]

Talk about inflation...

 

[Casey Jones]

Of course.

That is the purpose of fiat money. And of Central Banks - to manipulate it and debase it, to suck the value of the subjects' hard-earned money, to give the seignorage to cronies. And to themselves.

 

[Unca Walt]

Like the dot com bubble in 2001? .

That dot com bubble was the biggest change in my financial life by an order of magnitude. I "bought" at $1 and sold at $51. <-- My only foray into stocks, and only because I took shares in place of a slightly higher hourly rate.

 

[Unca Walt]

I'm paying more for just about everything except mortgage and gas.

Gold bought @370 and silver @7 keeps me above water. For now.

War will make it all irrelevent.

$190 and $5

 

[jrog100]

That dot com bubble was the biggest change in my financial life by an order of magnitude. I "bought" at $1 and sold at $51. <-- My only foray into stocks, and only because I took shares in place of a slightly higher hourly rate.

stud

 

[Goldhedge]

The Price of Easy Money Now Coming Due​

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