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To: J-L-S who wrote (23848)	8/18/2006 3:48:18 PM
From: Kirk ©	Read Replies (1) \| Respond to of 42834

""caused by an increase in available currency and credit beyond the proportion of available goods and services." " Didn't I say it in simpler terms such as "higher demand for energy was causing it to go up in price?" That is inflation. I didn't find the definition of inflation hard to understand but I felt saying it in simpler terms would avoid confusion for some. Oil price went up due to higher demand. PERIOD. This is NOT in debate. Ignoring hurricanes and BP pipeline disruptions in supply, I think everyone agrees that energy prices will drop if we get more supply to meet the demand or if demand goes down due to slowing economies. Higher demand causing higher prices is inflation. PERIOD. You can call it "an increase in available currency and credit beyond the proportion of available goods and services" if it makes you feel better to use $2 words, but I think you confuse yourself as to what it means. There would not be more currency to purchase more energy if economies were not growing.