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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TGPTNDR who wrote (112507)	5/24/2000 7:36:00 PM
From: Joe NYC	Read Replies (2) \| Respond to of 1570269

tgptndr, OT (?) Thanks for the detail reply. Few comments: -PPI is more of a leading indicator than CPI -there is more to inflation than CPI -your point that 30% of the total CPI is raw material cost of Oil and Gas must be wrong. -The US CPI has been the highest in the industrial world for some time. The rest of the world uses oil as well. -after all this "horrible" and "unnecessary" inflation fighting, the inflation rate has still > 2.5%. What would it have been if AG did nothing and kept pumping money? -prices of commodities don't exist in the vacuum. They need to be pumped out or dug from the ground by people / companies, which are part of the (world) economy, and they respond to the same forces as your local barber. Cartels like OPEC can try to corner the market, but these efforts usually fail. -the inflation rate over recent period would have been higher if the Dollar was not raising against major US trading partners. What I asked you in my post was how much of the prosperity would have been lost if the inflation rate was much higher than it is now. Inflation at some level causes some harm. To get to a lower level, some pain is felt, but the amount of harm inflicted by the new, lower inflation is lower than original. You are objecting to the pain caused by trying to lower inflation, but ignoring benefits of the result. I view the inflation as a disease, and AG as a doctor or a healer. Some of the medicine may taste bitter, but without it, the cancer of inflation would have eaten us alive. What I would really like to see is not just a remission (3% inflation) but a cure (0% inflation). If we are cured of inflation, and when a vendor comes with a price increase, a consumer would say "Who do you think you are kidding?" When an employee comes asking for a raise, the employer should ask: "How much more have you done this year compared to last?" Joe