watch for ka (bond crisis) before poom

[charliebrown]

This article lacks a little meat, but it was clear.
Author states that bond crises causes rapidly rising interest rates,
unsustainable interest payments, then the money printing starts.

It is short, have a read.
http://www.kitco.com/ind/Trendsman/mar192010.html

[icm63]

Re: watch for ka (bond crisis) before poom

The BOND market is the beast that rules other markets.

Or is that CDS bets on the USA bond market.

Just look at Greece. The bond market didnt bring to the fore their issues it was the CDS bets on Greece bonds...chicken or egg???

[ThePythonicCow]

Re: watch for ka (bond crisis) before poom

This article lacks a little meat, but it was clear.

This article may be difficult for EJ (or Metalman ) to parse.

It states:

Iceland’s Economy Shrinks 8% as Prices rise by 11%. Deflationary forces are causing severe inflation, as Iceland’s government is bankrupt. ...


The deflationists have it backwards. As we’ve illustrated, severe deflation is what leads to hyperinflation

Pretty clearly this article is using the word "deflation" to mean something like "a shrinking economy" rather than (what I take to be EJ's use) "lower nominal prices."

This highlights nicely a problem I have with the big inflation vs deflation debate. The key words are often used with different meanings by the various parties, which is in itself not surprising. But then when one of the parties insists that there is only one right definition for the key words and adamantly interprets the pronouncements of the other parties using those "right" definition, even if it makes the other parties pronouncements look stupid, this hinders communication and understanding.

A key step in successful communication is intuiting what meaning (or multiple even conflicting meanings) the other party attaches to words. You might choose to recommend to the other party an improved terminology, but such conversation begins with a mutual explicit awareness of their present terminology.

[GRG55]

Re: watch for ka (bond crisis) before poom

This article may be difficult for EJ (or Metalman ) to parse.

It states:
Pretty clearly this article is using the word "deflation" to mean something like "a shrinking economy" rather than (what I take to be EJ's use) "lower nominal prices."

This highlights nicely a problem I have with the big inflation vs deflation debate. The key words are often used with different meanings by the various parties, which is in itself not surprising. But then when one of the parties insists that there is only one right definition for the key words and adamantly interprets the pronouncements of the other parties using those "right" definition, even if it makes the other parties pronouncements look stupid, this hinders communication and understanding.

A key step in successful communication is intuiting what meaning (or multiple even conflicting meanings) the other party attaches to words. You might choose to recommend to the other party an improved terminology, but such conversation begins with a mutual explicit awareness of their present terminology.

I think we should outlaw all communication in English on this site, and immediately switch to Chinese. I hear that's going to be our future under all scenarios so we might as well get on with it.

Can anybody here give us the Mandarin characters for "inflation" and "deflation"? Let's hope there's only one for each.

That would be a good start, non? ;)

[skyson]

Re: watch for ka (bond crisis) before poom

I think we should outlaw all communication in English on this site, and immediately switch to Chinese. I hear that's going to be our future under all scenarios so we might as well get on with it.

Can anybody here give us the Mandarin characters for "inflation" and "deflation"? Let's hope there's only one for each.

That would be a good start, non? ;)

Well, it is certainly disappointing. There are different characters for both "inflation" and "deflation" in Chinese:

Inflation:

formal version: 通貨膨脹 (traditional Chinese) and 通货膨胀(Simplified Chinese)). Pronounced "Tong Huo Peng Zhang".
informal version: 通脹 (traditional Chinese) and 通胀(Simplified Chinese). Pronounced "Tong Zhang".

Deflation:

formal version:通貨緊縮 (traditional Chinese)and 通货紧缩 (Simplified Chinese). Pronounced "Tong Huo Jin Suo".
informal version: 通縮 (traditional Chinese) and 通缩(Simplified Chinese). Pronounced "Tong Suo".

Now, I am not an economist, so am not familiar with what different branches of economists attaching different meanings to the above words.

I guess it not about the words, it is about games people play with words...to avoid saying the right/wrong thing?

[ThePythonicCow]

Re: watch for ka (bond crisis) before poom

I think we should outlaw all communication in English on this site, and immediately switch to Chinese. I hear that's going to be our future under all scenarios so we might as well get on with it.

My point was not that words have different meanings. That's a natural part of communication between sentient beings.

My point was that good communication aids in understanding, and that a sympathetic, even bemused, tolerance for the diverse meanings of words aids in good communication.

Dogmatic imposition of the "right" meanings, to the point of refusing to acknowledge the use by others of other meanings, or to the point of misinterpreting the meanings of the words and hence of the statements of others, is not so helpful.