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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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fred woodall
To: elmatador who wrote (11572)9/6/2023 6:08:34 AM
From: Maurice Winn1 Recommendation  Read Replies (1) of 13779
 
ElM, you are confused. When there is a shortage of something, that ipso facto means the customers CAN afford it and that they have bought the stock. So the prices have to go up to keep supplies available and pay for more tons of production.

That doesn't cause inflation. That is inflation = prices going up. The inflation is caused by the governments diluting the money, now a $trillion at a time in the USA. Inflation isn't caused by people putting prices up. If they put prices up while there are full shelves, they will sell less and get less money and have old stock sitting around depreciating.

The world didn't follow my advice. They ignore my advice which is to keep money supplies tight as a drum, keeping supply constant so that there is zero inflation/dilution. That should make prices fall because as efficiency improves, prices should fall. Falling prices is a very good thing. Loonies think deflation is a bad thing. It's not. Cheaper prices is good when it's because the cost of producing things is going down.

Mqurice
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