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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: zonder who wrote (275536)1/29/2004 10:03:08 AM
From: Bid Buster  Read Replies (1) of 436258
 
What came first, the chicken or the egg?..I tend to think money supply is the root cause of inflation, not rates..rates are just the reaction and can be held artificially high or low.
Its pretty clear we've had inflation for some time in U.S. produced goods and services...and i think its safe to say inflation is under reported in the PPI and CPI with hedonic accounting.
Your right about gold not being the only hedge against inflation..money tends to shift to commodities and hard assets.

A couple of people have said higher rates are deflationary but wouldn't a higher cost of borrowing be inflationary in itself?
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