Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Moonman62

....well no it doesn’t....I was being brief....but all the things like wages, prices etc that go with it especially in the now emerging countries is driving it up or should I say driving the fear up......I was just using condensed form....should have been more clear....


15 posted on 06/12/2007 6:57:41 PM PDT by NorCalRepub
[ Post Reply | Private Reply | To 12 | View Replies ]


To: NorCalRepub
Rising wages, rising market prices, and low unemployment don't cause inflation either.

Wages, and general prices can rise as an effect of inflation, but they don't cause inflation. Historical periods of inflation have always been associated with governments spending more money than they take in, usually either due to the cost of war, or heavy social spending, or both.

I believe what's happened this time is central banks have mistaken the market effects of higher energy prices for inflation, so now they are going to raise rates too high and choke off their economies. That's similar to what happened in the 1970's.

17 posted on 06/12/2007 7:09:44 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
[ Post Reply | Private Reply | To 15 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson