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Politics : Liberalism: Do You Agree We've Had Enough of It?
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To: lorne who wrote (130937)4/23/2012 1:50:15 PM
From: TimF1 Recommendation  Read Replies (1) of 224744
 
Yes, and increase in the monetary supply, that's greater then the increase in supply of goods and services, and which isn't covered for by a decrease in the velocity of money (and when such a decrease in velocity does happen it probably won't last, so it often only puts off inflation), will create inflationary pressure, whether the money supply increase is electronic, paper money, or gold (witness the inflation in Europe and esp. Spain when a lot of gold from the "new world" was carted across the oceans).
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