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To: DeaconBenjamin

Inflation is caused by to many dollars chasing to few goods. Having said that, all of the stimulus is aimed ant unemployment/WIC/food stamps/EBT etc. is free money. It’s value has greatly diminished basically free money for the poor so they are having a field day with it, jacking up the prices and demand.


50 posted on 11/04/2011 10:57:57 AM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: central_va

Inflation is caused by massive printing of dollars, with no real backing. The printing is caused by the need for cash to fund all of the stimulus; there is no solid backing for the currency (since even the authority to tax doesn’t hold up well when there is less to tax anyway), and the long-term IOUs behind that paper make it a risky investment indeed.

Germany’s answer to the WWI reparations debt was to simply print billions of Marks; it paid the debt, but de-valued the currency to the point where you had to be paid twice a day (to let you spend the first half day’s pay at lunchtime before it lost value), and prices would change in restaurants while you ate.

The Dems solution to our economic problem is nearly identical, and markets have responded accordingly.


69 posted on 11/04/2011 3:36:32 PM PDT by kearnyirish2
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