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To: M. Espinola
I respectfully disagree with your last statement, here's why.

The old saying it is the same house, it is the money that has changed in price can be modified, it is the same petrol but it is the money that has changed in price.

It may be an oversimplification to say this but there is still a lot of truth in it: Every additional new dollar put into circulation makes the existing dollars less valuable. That is why the prices go up, to gather more of the cheaper money. The merchants are getting more nominal cheaper money but no more purchasing power than with earlier lower prices and stronger money.

That is where your inflation comes from. So it is not skyrocketing energy prices (it is the same energy, extracted and delivered the same way), the problem is over the long term crashing money, or money that is doing a poorer and poorer job of storing the wealth of its holders.

16 posted on 12/02/2005 4:57:53 AM PST by Jason_b
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To: Jason_b
Thanks for your response. I agree with your statements relating to new/old money and inflation.

It's very true, however when one key commodity gets a 40% price jolt in one year,(even if some of the price includes massive sales tax increases) and that commodity, in this case crude oil, overlaps into the entire economy pruducing various other uses as listed on the charts below, then the general population is effected economically.


17 posted on 12/02/2005 11:56:01 AM PST by M. Espinola (Freedom is never free)
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