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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: dijaexyahoo who wrote (23920)	8/20/2006 8:48:46 PM
From: Kirk ©	Respond to of 42834

"--Oh, NOW I get it! High oil prices cause inflation, so the fed simply hiked rates while oil was going through the roof and, VIOLA! no (or very mild) inflation!" Yes. Here is an easier example I am sure you will relate to. Just like a hot oven causes burned hands. Put on oven mits to remove your TV dinner and you don't burn your hands. But to be more factual, increasing oil prices are inflationary... once they stop going up... then it is secondary and you need to read what Ben Bernanke said... he has a much better ability to explain it to you than I.