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To: Breakfast of Champions

Yes - it is the price of oil...


2 posted on 04/27/2007 8:41:51 AM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: 2banana

Crude was higher last year. Retail gasoline seems to be headed to a permanently higher price level. Food prices appear to be up considerably.


4 posted on 04/27/2007 8:44:33 AM PDT by RightWhale (3 May '07 3:14 PM)
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To: 2banana
It's not the price of oil. Inflation is caused by printing money.

Think of it this way. You have a budget of $100 per week. The price of oil goes up. What do you do? You decrease your spending somewhere else, so you still spend $100 per week. that is, there is no inflation becuase whatever you stopped spending money on went down in price.

What else can you do? You can borrow money. But whoever you borrow it from spends less.

Unless, that is, the Feds print a bunch of money for the banks to lend to you. Now, you have more money and are spending more money.

That's inflation. It is caused by printing money.

5 posted on 04/27/2007 8:45:15 AM PDT by Rodney King (No, we can't all just get along.)
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