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To: LLCF who wrote (52654)5/13/2000 3:55:00 PM
From: Hawkmoon  Read Replies (1) | Respond to of 116914
 
David... We can argue all we want, but imo true inflation only occurs to the extent that production capacity is strained beyond its means to meet demand. Too many dollars chasing too few goods.

If some particular provider of a commodity opts to constrain their providing the necessary product in order to boost profits and create artificial shortages, the competitors to these commodity providers will step in and provide the resource, expanding overall capacity and bringing down prices over the long term.

Regards,

Ron