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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Katelew who wrote (71386)	6/10/2008 11:54:28 AM
From: Steve Lokness	Read Replies (1) \| Respond to of 542213

Katelaw; The reality is that it is the prices of all raw materials....nat gas, steel, copper, etc.....driving inflation. Wow! Very well thought out and great arguments. My respect for you has gone up several notches. ......Ron Paul does not put forth economic theory, but argues on the side of established Austrian school thinking. Some who come out against Paul I think do not understand this. You are right on to bring up the issue of shrinking credit - which is really at the heart of the debate between those who believe we are heading towards high inflation and those arguing we will soon see real deflation. The shrinking credit does not really square with inflation - but could it be that the higher prices we are seeing now are a result of the largest credit expansion we have ever had in the housing boom? That credit expansion and the busy federal printing press would account for higher prices - if the higher prices are a lagging indicator. Check the changing definitions of inflation; inflationdata.com The definition changing from cause to result. In any case, you print plane loads of money and you will get inflation and that is what has happened IMHO. steve