Money, properly defined, is a positive.
Debt, properly defined, is a negative.
Mish notes both money and debt have monetary aspects, and all deflation and inflation is a monetary event.
Now, if inflation is positively printing too much (positive x positive) currency, the the result is hyperinflation at some point, too much currency for too little goods.
Now a negative times a positive yields a negative. A positive three times a negative five gives you three negative fives, or negative 15. So the more debt you multiply, the more negative you get in the hole. When there is more credit (debt facility) than demand for credit (debt facility), then there is credit deflation, hyper-deflation?
High and low, left and right, there is a head-scratching going on regarding the debt markets:
If I am right, do not own property or pension or either, nor have a paycheck. All bad news. Get self employed.
Feel free to forward this by email to three of your friends.
Debt, properly defined, is a negative.
Mish notes both money and debt have monetary aspects, and all deflation and inflation is a monetary event.
Now, if inflation is positively printing too much (positive x positive) currency, the the result is hyperinflation at some point, too much currency for too little goods.
Now a negative times a positive yields a negative. A positive three times a negative five gives you three negative fives, or negative 15. So the more debt you multiply, the more negative you get in the hole. When there is more credit (debt facility) than demand for credit (debt facility), then there is credit deflation, hyper-deflation?
High and low, left and right, there is a head-scratching going on regarding the debt markets:
As we stated before, a negative swap spread holds no interpretative meaning, the very fact of which is the most important element.Do they not see what they have done? Hyperinflation of debt means hyperdeflation of currency, it seems to me. Correct me if I am wrong.
If I am right, do not own property or pension or either, nor have a paycheck. All bad news. Get self employed.
Feel free to forward this by email to three of your friends.
1 comments:
Hi John, is deflation linked to negative interest rates? What is the rationale for negative interest rates? Why banks would do this does not make any sense. Wouldn't depositors just change banks or remove most, if not all of their funds?
Swiss alternative bank breaks negative rates taboo:
http://news.yahoo.com/swiss-alternative-bank-breaks-negative-rates-taboo-055303880.html;_ylt=AwrXgiIMyFFWjEMAJbLQtDMD;_ylu=X3oDMTByNDZ0aWFxBGNvbG8DZ3ExBHBvcwM2BHZ0aWQDBHNlYwNzcg--
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