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To: arthurus

Inflation is the result of how we are paying for the war. We aren’t paying additional taxes to cover the expense, we are borrowing. Congress is authorizing increases in the national debt, which increases the money supply. And that’s inflationary.

If we don’t curtail government spending and reduce the trade deficit the dollar will continue to fall.


13 posted on 07/15/2008 11:23:19 PM PDT by Pelham (Press 1 for English)
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To: Pelham
"We aren’t paying additional taxes to cover the expense, we are borrowing."

The U.S.A. economy has been growing nicely for more than 6 years now. GW's tax cuts have added immensly to the federal coffers. U.S. deficit spending is down vis a vis total spending for several years.

yitbos

14 posted on 07/15/2008 11:33:29 PM PDT by bruinbirdman ("Those who control language control minds." - Ayn Rand)
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To: Pelham

Inflation is not the result of paying for the war. It is the method by which we are paying for the war. It is the government welshing on its debts by paying back dollar denominated debt in smaller dollars, smaller value. All governments indulge from time to time. It has ended some governments. Think of Weimar Germany.


19 posted on 07/16/2008 12:26:46 AM PDT by arthurus
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