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To: Wyatt's Torch; palmer
...seeing velocity continue to decline because of people “amassing cash” - if demand exceeds supply of dollars that’s deflation which I believe is a greater risk...

--and that's the elephant fornicating in the living room that nobody's noticed yet. 

Since the beginning of 2008 the total money supply's increased by half while the total value of America's private wealth has increased by only a fourth.  That's +50% more money to buy +25% more stuff; ordinarily that really should spell out big time inflation, yet prices have increased by only a tenth from '08 to now.   Money's not moving.  If this were a guy seeing a doctor for cramps I think we'd be talking industrial strength laxative.

76 posted on 05/01/2014 12:19:07 PM PDT by expat_panama
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To: expat_panama

Money’s not moving. If this were a guy seeing a doctor for cramps I think we’d be talking industrial strength laxative.

LMAO! The “system” is backing up for sure :-)


77 posted on 05/01/2014 1:21:27 PM PDT by Wyatt's Torch
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To: expat_panama; Wyatt's Torch
yet prices have increased by only a tenth from '08 to now.

Inflation observed at the retail level is a subtle psychological phenomenon. There's no question we are mostly in a cautious and money-hoarding mood. But that can change with a lttle government inducd wage-push inflation. It will take years to change the greater psychology and it also depends on avoiding completel collapse.

79 posted on 05/01/2014 1:30:51 PM PDT by palmer (There's someone in my lead but it's not me)
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