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To: InterceptPoint

"Correct me if I'm wrong but isn't inflation caused by the Fed printing money? "


That and the pesky prime rate they lend on the money they print. For very dollar they print they also get to loan, IIRC, 7 at the prime rate. All three actors, printing money, over lending, and that rate, contribute to the inflationary rate. Ever notice that the prime rate and the rate of inflation are usually about the same?

For every deposit to the federal reserve a bank also gets to loan 10.


53 posted on 02/23/2006 12:51:20 PM PST by CodeToad
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To: CodeToad
That and the pesky prime rate they lend on the money they print. For very dollar they print they also get to loan, IIRC, 7 at the prime rate.

I'm afraid to ask where you got this info.

Ever notice that the prime rate and the rate of inflation are usually about the same?

Not even close. Do you know why it's called the Prime Rate?

55 posted on 02/23/2006 12:53:52 PM PST by Toddsterpatriot (Why are protectionists so bad at math?)
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