Now I get it -it's been staring in my face for weeks:
You use the word deflation in an unconventional third way, not the economic sense of shrinking money supply, not in the populist sense of shrinking prices, but generally as shrinkage.
Shrinking real wages, shrinking house building, shrinking GDP, shrinking dicks.
Makes sense, although it should be properly agreed upon during a discussion.
You use the word deflation in an unconventional third way, not the economic sense of shrinking money supply, not in the populist sense of shrinking prices, but generally as shrinkage.
Shrinking real wages, shrinking house building, shrinking GDP, shrinking dicks.
Makes sense, although it should be properly agreed upon during a discussion.
altho it is still probable that my definition fits the traditional definition of shrinking money supply (monetary base+credit). the problem is i can't find any reliable figures on total aggregate debt over time, including shadow banking, and whether it is shrinking or not. that chart above of net shadow banking liabilities is a big hint as to what is going on, the question being, whether or not it is being adequately offset by increasing gvt debt and monetary base.
anyone?
Fair. Seeing the world overall, we have government debt creation in Japan and China. China is desperate to reduce debt ratios in businesses, but they can't, when they try they feel the pain with failing businesses all over the place. With money supply deflation, we should see falling prices. We have falling prices in gold and some capital commodities. Commodity prices are where we should expect it first, anyway.
