I Am NOT The Wolfman
Over at a financial forum...
Rs_trade,
"i believe that inflation and deflation are a reflection of affordability. "
Inflation and deflation are a direct reflection of the circulation of services and goods in the economy. A proxy of this is taken from the ROC rate of change or sum delta in checkable deposits and cash circulating in the banking system. All other current measures such as CPI and GDP are based upon false doctrines and therefore are inaccurate measures yielding falsity in econometrics.
Why does the economy refuse to improve? Whats all this secular stagnation? Monetary flows are the key to EVERYTHING, this is gospel. It is a well known fact that monetary flows are effected by transactions rate of turnover which has been sequestered by QE. Contrary to popular belief, QE is not expansionary, it is contractionary. When a CB buys its own bonds, the money created to buy the bonds is sucked right out of the economy. What money printing? When combined with ZIRP and IOER, this is a self reinforcing loop, leading to more capital being diverted to non productive activity, as in being sucked out of the economy and into financialism when everybody on the planet and their mother clusterpiles into UST's and arbritrage.
As for our contractionary economic trajectory, which has been going on for years, as in there never was a real recovery, but you might have bought into that BS media narrative, a great teacher (Salmo Trutta) once taught me: it is axiomatic (true for over 100 years), given nominal rigidity (limited upward and downward price and wage flexibility), unless monetary flows (our means-of-payment money times its transactions rate-of-turnover), exceed the rate-of-change, roc, in real-output by 2-3 percentage points (at least the roc of "asked prices"), output can't be sold, production will be cut back, incomes will decline, and layoffs will ensue. What do you think is going to happen when the seasonal slowdown in monetary flows every Dec. is of a magnitude 3 to 6X above normal this year?
Doo Doo Doo Doh ....what is that sucking sound? They will call it a recession, when in reality, its a depression. And NO I am NOT the Wolfman... he is everywhere and I am just a lowly radio station attendant. Out.
Why does the economy refuse to improve? Whats all this secular stagnation? Monetary flows are the key to EVERYTHING, this is gospel. It is a well known fact that monetary flows are effected by transactions rate of turnover which has been sequestered by QE. Contrary to popular belief, QE is not expansionary, it is contractionary. When a CB buys its own bonds, the money created to buy the bonds is sucked right out of the economy. What money printing? When combined with ZIRP and IOER, this is a self reinforcing loop, leading to more capital being diverted to non productive activity, as in being sucked out of the economy and into financialism when everybody on the planet and their mother clusterpiles into UST's and arbritrage.
As for our contractionary economic trajectory, which has been going on for years, as in there never was a real recovery, but you might have bought into that BS media narrative, a great teacher (Salmo Trutta) once taught me: it is axiomatic (true for over 100 years), given nominal rigidity (limited upward and downward price and wage flexibility), unless monetary flows (our means-of-payment money times its transactions rate-of-turnover), exceed the rate-of-change, roc, in real-output by 2-3 percentage points (at least the roc of "asked prices"), output can't be sold, production will be cut back, incomes will decline, and layoffs will ensue. What do you think is going to happen when the seasonal slowdown in monetary flows every Dec. is of a magnitude 3 to 6X above normal this year?
Doo Doo Doo Doh ....what is that sucking sound? They will call it a recession, when in reality, its a depression. And NO I am NOT the Wolfman... he is everywhere and I am just a lowly radio station attendant. Out.
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