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To: Iris7

Are you saying that more dollars lowers prices? If so, I would tend to think you're wrong. More dollars chasing goods equals inflation.


33 posted on 11/28/2004 4:26:51 AM PST by durasell (Friends are so alarming, My lover's never charming...)
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To: durasell
Since we are discussing the "devaluation" of the dollar, we are discussing the value of the dollar in foreign currencies. More dollars mean lower prices for dollars.

A lower price for dollars means a higher price for imported goods, and feed through prices for domestic goods. Inflation, that is, unless "liquidity" is curbed. A crash in the house market would have dire political repercussions, naturally.

I am sorry I did not make all this explicit earlier.

As far as inflation goes, it is probably not escapable.

There are good arguments that the Urban Consumer Price Index has been largely bogus since at least LBJ's time. The Producer Price Index is a more accurate inflation index, seems to me.

35 posted on 11/28/2004 4:44:38 AM PST by Iris7 (.....to protect the Constitution from all enemies, both foreign and domestic. Same bunch, anyway.)
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