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

To: suanny who wrote (75516)	12/13/2006 12:22:38 PM
From: GST	Read Replies (4) \| Respond to of 110194

I will make it simple for you. Most of what you buy comes from outside the US. The price of everything we import is going up as the dollar goes down. Bottom line -- you pay more. Next year you will pay more than today. It does not matter to the seller if you become poor. It does not matter to the seller if you buy less. It does not matter to the seller if your house goes down in value. Nothing about your sorry life or mine matters to the seller. What matters to the seller is that you have a worthless currency to offer in exchange for imported goods and services. It will still cost you more to buy things next year, and the year after that. That is inflation. The 'other' side does not believe this is inflation. They say that rising prices are not inflation. They say that only a rise in money supply from the Fed is inflation. So if the Fed holds money supply steady for the next year while the price of everything you buy doubles, there is no inflation from their point of view. If the opposite happens and there is no change in prices but the Fed increases money supply by 10% then these guys will tell you there is rampant inflation.