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To: reaganaut1
"Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly."

There so many things wrong with that statement that I must now be living on a different planet.

10 posted on 10/27/2013 1:21:46 PM PDT by A Navy Vet (An Oath is Forever!)
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To: A Navy Vet

> “Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly.”
There so many things wrong with that statement that I must now be living on a different planet.

Communists are sick minded puppies. They’re like pissed off homos that seek revenge by spreading their HIV so that they’re not alone...


42 posted on 10/27/2013 2:10:05 PM PDT by jsanders2001
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To: A Navy Vet

> “Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly.”
There so many things wrong with that statement that I must now be living on a different planet.

Communists are sick minded puppies. They’re like pissed off homos that seek revenge by spreading their HIV so that they’re not alone...


43 posted on 10/27/2013 2:10:06 PM PDT by jsanders2001
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To: A Navy Vet
"Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly."

This is typical liberal thinking and mindset. It's true that a higher price means higher profits, but not in an inflationary environment. The driver there is higher costs on business which then passes them on to the consumer. How does that improve profits?

Rising wages that don't improve because of productivity improvements or improvements in the marginal value of labor don't help workers. Those same workers are now chasing the very goods that are rising in price in conjunction with their wages.

A fixed debt level during an inflationary event does mean stealing, from the lender, and creditors are quick to learn that. So you either get shorter borrowing time horizons, contract payments linked to inflation, or reduced lending on low margin loans.

Inflation also encourages people and businesses to borrow money and spend it more quickly. This statement is just plain stupid and would be obvious to a near zombie, if he'd just think about it for a moment.

Sadly, Obamabot no think.

88 posted on 10/27/2013 6:09:04 PM PDT by 1010RD (First, Do No Harm)
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