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To: NOW who wrote (72506)	12/18/2007 2:07:56 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 116555

Duh! Deflationists say that prices will fall. Not rise.

To: NOW who wrote (72506)	12/18/2007 2:36:43 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 116555

tooearly; definition of deflation: A persistent price decline of goods and services--the inverse to inflation. Deflation usually occurs during a recession and is characterized by supply exceeding demand, and while there is increased buying power, the amount of currency in circulation is greatly reduced. Marked deflation generally affects production and employment negatively. Deflation should not be confused with disinflation, which is a result of a slow down in the rate that prices increase There is no doubt that prices - at least around my part of the world - are still going up. Virtually everything - even computers, because I'm going to replace my old PC with an Apple because the PC continues to lock up under XP. Just like the commercial says. The question I think we are all trying to figure out is whether the second part of the definition above is coming true. But that doesn't mean that one should be criticized just because they give evidence we are not there yet. steve