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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (53868)	2/15/2006 12:28:07 AM
From: GST	Read Replies (3) \| Respond to of 110194

Not so Claude. The supply of some things increases -- and an increase in the supply of goods combined with an increase in money supply does nothing to increase the price. On the other hand, there are things where the supply can decrease and the price as a result can go up if demand remains high -- and all this can happen while there is a decrease in money supply. The idea that money supply is inflation is as logical as saying that sunshine is food. It takes sunshine to grow most food -- but more or less sunshine in no way dictates in any direct way how much food will be grown. Food is what you eat. Inflation is the price you pay.