Deflation

[tabnloz]

Read an interesting take today.

Basically said that although everyone is worried that there is no inflation, but that as soon as there is talk of ending QE, everything tanks.

This suggests deflation. So, if beneath the QE we have deflation of say -5% and our stated QE inflation rate is 1%, then we have a real inflation rate of 6%.

Thoughts?

[Etlase2]

This suggests deflation. So, if beneath the QE we have deflation of say -5% and our stated QE inflation rate is 1%, then we have a real inflation rate of 6%.

My thoughts are this is an ignorant statement. You use deflation to mean "prices", while inflation means "increase in money supply". Talk about being as obtuse as possible when describing economic fluctuations. QE is picking up the slack of where credit money disappeared due to the recession. Learn how money actually works, and stop eating what bitcoinomists feed you.

[tabnloz]

This suggests deflation. So, if beneath the QE we have deflation of say -5% and our stated QE inflation rate is 1%, then we have a real inflation rate of 6%.

My thoughts are this is an ignorant statement. You use deflation to mean "prices", while inflation means "increase in money supply". Talk about being as obtuse as possible when describing economic fluctuations. QE is picking up the slack of where credit money disappeared due to the recession. Learn how money actually works, and stop eating what bitcoinomists feed you.

Cheers.

I summarized something I read in a very simple way, but gee, consider me put in my place.

I'm not eating anything people tell me to. If I were, my language would have been different and my statement more definitive. Alas, I wanted to get people's thoughts.

Try comprehending the whole statement before you get so condescending.

[Etlase2]

Well whatever you read or the knowledge you've gathered here betray a lack of understanding of economics. Like all of the established gents that spout off around here. "Deflation is prices, but inflation is money supply increase, ooh ahh teh debil". There is no whole statement to comprehend--it is based on incorrect presumptions therefore should not carry any weight, and would only bear discussion in a place that uses misdefinitions and disinformation as its MO. Like, oh say the btctalk forums. Your post screams, "I've either been fooled or am attempting to continue the foolery in a circle-jerk of bitcoinomics".

You could start by explaining what you see the difference is between the "stated QE inflation rate" and the "real inflation rate", and when you stumble and realize you are using the same word for two different things and that neither has a 1:1 correlation with prices, perhaps you will understand. Perhaps you can link some graphs from shadowstats or whatever that website is that shows the inflation rate has been 20% for decades. I will be so convinced.