To: Dalite
I disagree with "mathematically guaranteed", but I will amazed if inflation is not the route chosen.
Something as trivial as crashing the housing market is avoided for political reasons right now, so what will be the choice when fifty percent unemployment is in the cards and no welfare is available? Let the voters starve?
I think we will see an extended period of double digit inflation and unemployment. The Dems will likely be able to hang the thing on the Pubs, since the voters are too stupid to count with their toes.
66 posted on
11/28/2004 6:11:11 PM PST by
Iris7
(.....to protect the Constitution from all enemies, both foreign and domestic. Same bunch, anyway.)
To: Iris7
I consider that Government spending is ultimately the source of all inflation.
Inflation can be described as a hidden tax that gives the appearance of rising prices due to loss of buying power.
Inflation is caused when there is too much cash chasing the same (or smaller) amount of goods.
So, using those loose corollaries, we have an abundance of government spending, prices are rising and there is an excess of cash.
The most amazing thing is that the inflation is falsely kept low to the US citizen by cleverly being exported in payment to our trading partners for goods and services that make up the trade imbalance.
If there was ever any doubt as to why the current immigration policy (no immigration policy) is in effect, all you have to do is consider how much US Dollars they send out of the economy to bring the next one over the border.
If all of our excess money was contained within the United States, the amount of inflation would be astronomical.
That is why I refer to it as mathematically guaranteed.
If you purchase a fifth of a quality adult beverage, and invite another friend over to share some fellowship (and adult beverage), you would have a fairly good chance for success (great fellowship and a nice glow).
However, if 1000 of your closest friends showed up uninvited, it is doubtful that you would achieve either goal (Fellowship or warm glow).
In fact, if you factored the experience down to what happened to the effects of the adult beverage, you would find that it was diluted far beyond the point that it could be noticed, when shared with the extra 1000 guests.
For this example, consider and the combination of yourself and your friend to be a balanced cash supply; balanced against the fifth of quality adult beverage (perfect mix of gods and services) - both comprising a perfect economical system.
Now, consider the 1000 guests (excess dollars), chasing the same amount goods and services (one fifth of quality adult beverage).
Do you think that this would be the desired situation?
How does it compare with our current situation?
67 posted on
11/28/2004 6:35:33 PM PST by
Dalite
(If PRO is the opposite of CON, What is the opposite of PROgress? Go Figure....)
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