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To: RaceBannon

It doesn’t have to.

If the dollars are removed from the economy by taxation then inflation will not result.

So, the real culprit is deficit spending where money is created out of thin air and results in increased demand.


19 posted on 06/15/2022 5:33:42 AM PDT by Kenny500c ( )
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To: Kenny500c

“More money chasing the same quantity of goods and service drive up their prices.” I don’t buy it. I go to the stores and buy what I need at the stated prices. I don’t bid up the price.
I way I have seen it is, there is a set amount of gold being represented by X dollars. If the government prints X more dollars, then one unit of gold is represented by 2x dollars. So to buy a jug of milk worth one unit of gold I have to give 2x dollars instead of 1x dollars as before.
In the end it might amount the the same thing, but I am not bidding to a higher price, I’m being force to pay more dollars.


46 posted on 06/15/2022 5:52:23 AM PDT by jimfr
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To: Kenny500c
It doesn’t have to.

If the dollars are removed from the economy by taxation then inflation will not result.

I think that if the dollars are removed for the demand of any kind of bubble, then inflation will not result.

I believe that is a secret the RINOs discovered long ago. They can print money into a housing bubble, or a dot-com bubble or whatever - and no inflation. They pop the bubble and “Poof!” all that “wealth” has magically disappeared.

If the government causes inflation, everyone with cash is robbed. If a bubble prevents inflation, then only those with wealth in the bubble are robbed and there is no inflation.

57 posted on 06/15/2022 5:55:35 AM PDT by Empire_of_Liberty
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