Attempting to pour oil on troubled waters, I'd like to point out that while Judy is correct that "core inflation" has been rather low lately, the essential cost of living has risen drastically due, at least partly, to the price of oil.
About 30% of the cost of food is tied directly to oil pricing (transportation costs etc), and there are also issues having to do with the relative weakness of the American dollar compared to the European dollar, which has emerged as the standard for many things (some people believe that Hussein's desire to start accepting Euros rather than dollars was one very important reason why Gulf War II happened). My own belief is that monetary supply has very little to do with the rise in the cost of living, simply because the Fractional Banking system already ensures that the supply of money is dozens of times larger than the capital that backs it. Printing 50x as much money suddenly might cause hyper-inflation, but printing 10% more or even 2x more, is merely a tiny blip compared to what the banks already do, money-supply-wise. L --- In FairfieldLife@yahoogroups.com, "authfriend" <jstein@...> wrote: > > > > --- In FairfieldLife@yahoogroups.com, Bhairitu <noozguru@> wrote: > > > > I was arguing here the other day that 2.3% inflation seems a little off > > to me. I do step out of the house daily and see prices in stores rather > > than living in a meditation cave. > > Who here do you think lives in a meditation cave, > Bhairitu? Names, please. > > > I also argued that the government > > "cooks" the numbers to 1) either avoid a panic or 2) to look > > good. Because I got sidetracked by someone who wanted the make > > the argument personal as usual > > No, this is not what happened, Bhairiu. You are not > telling the truth. *You* made it personal with your > very first post to the thread: > > ----- > [Me to BillyG:] > > Hmm, I've always thought printing money results in > > *inflation*, not deflation. > > > > Fortunately, the runaway inflation the GOP has been > > screaming is going to happen hasn't. > > [Bhairitu:] > Do you compare food prices to what they were two, three > years ago? *Some of us still have a memory system* and > can even remember what prices were 10 years ago for food, > gas, etc. [emphasis added] > ----- > > 'Nuff said. >
