[arrogantsob]

Devaluation of a currency is not a cause of inflation it is a RESULT of inflation. In true inflation the price of housing escalates as rapidly as everything else.

Food, and clothing have not gone up by 20%. Fuel price increases are not the result of monetary disturbances but the result of supply suppression due to Urkel’s anti-energy policies. Food prices are high due to another non-monetary issue, the diversion of food stocks into automobile fuel tanks.

Monetary policy changes generally takes about two years to take effect. So it many be about ready to take off but so far it has not been much of an issue.

[Tublecane]

“Devaluation of a currency is not a cause of inflation it is a RESULT of inflation”

No, devaluation of currency is inflation, purely and simply. Look it up.

[RobRoy]

>>Devaluation of a currency is not a cause of inflation it is a RESULT of inflation. <<

Actually, devaluation of a currency due to the increase in volume of money is the dictionary definition of inflation. The rest is a reflection of the money being reduced in value. I learned this while arguing the subject with some more knowledgeable freepers than myself.

http://dictionary.reference.com/browse/inflation

But we’re arguing fringe issues, really.

>>Food, and clothing have not gone up by 20%.<<

You are correct. And I didn’t say they have. I said they WILL. And worse...

If you are not big into gold and/or silver, you could be in for a world of pain. Heck, you probably will be anyway. Me too.

[The Truth Will Make You Free]

Not only is the definition of CPI deceptive, so is the accepted definition of inflation. Note the clarity and sensability of this definition of inflation from the 1959 Webster's New Collegiate Dictionary: "Disproportionate and relatively sharp and sudden increase in the quantity of money or credit, or both, relative to goods available for purchase. Inflation always produces a rise in the price level."

Notice that inflation is not the rise in prices. Inflation is the increase in the money supply. Triple digit inflation has already occurred. And notice again the statement of truth in the dictionary:

Inflation always produces a rise in the price level.