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

To: Tenchusatsu who wrote (212944)	12/8/2004 2:41:02 PM
From: combjelly	Respond to of 1573106

"the inflation under Carter's term was driven more by cost" Those two articles are pretty good. But they ignore some factors for clarity sake that should not be ignored if you want to understand what happened in order to avoid it in the future. Note how inflation had been creeping up prior to the Oil Embargo? That was the result of the deficit. It did drop with Nixon's price controls and Whip Inflation Now (WIN) campaign, but it wasn't stable. The price of oil wasn't the only factor, it was just the fuse. The debt was a factor in that it choked off money for re-investment because the government was competing for investment with businesses and what that didn't cover they had to print money to pay for it. The only reason that hasn't started yet is that foreign entities are still willing to buy US bonds. That might be stopping. When it does, spending has to stop (unlikely), M1 is increased beyond what productivity can support (certainty) or money that would normally be invested in businesses gets choked off (probably not until inflation kicks in).