No Inflation, Wanna Bet?

As the inflation deflation debate rages I have noticed that there are several different definitions of inflation in play. Lacking disclosure as to who is using which you can prove almost anything you want. Case in point Mish uses a definition that rests on what the big shots are doing in the credit markets.

1. Inflation is rising prices in general

2. Inflation is best described as a net expansion of money supply and credit.

3. Deflation is logically the opposite of (1.) or falling prices in general

It's not a bad definition for it's purpose, but by it you can prove prices are going down despite what you see at the pump. My definition tells me how much an outta work construction worker has to fork over for a six pack. That means I watch the US dollar index USD because that's what tells me how much a dollar is worth, which tells me how much beer I can buy. Check out the nice graph from SilverPricesNewsletter. I mean take a good close look.

Still no inflation?

How many six packs you wanna bet?