China rocked by 'sandpaper' chip fraud

vnunet.com ^ | 15 May 2006 | Simon Burns

[jonascord]

What would happen if the the mint reduced the number of dollars printed to less than replacement? Would that affect (and hopefully raise), the price of dollars on the international market?

[ThanhPhero]

Yes.

That is called deflation.

[razorback-bert]

ping myself

[Mark17]

How can this be? I thought we shipped our chip industry to the Chinese.

You mean we gave them other things besides nuclear weapons and missile technolgy?

[expat_panama]

The inflation rate illustrated on that chart is the price level. Generally that mirrors the actual inflation rate pretty well but, because it does not measure inflation directly, it is deceptive. The inflation of the dollar is, by definition, the excess dollars put into the market over the amount required to keep the dollar stable.

So I was talking about "the price level" (TPL) and you were talking about "inflation of the dollar" (IOTD).   I don't particularly care about the IOTD.   I haven't seen a good way of measuring it, I haven't seen any good data sources on it, and  I'm not even sure what it is. What I do know is that I've never seen any connection between IOTD and anything important like say, employment, consumer purchasing power, and levels of private wealth, etc..  I do care about TPL because it does affect these important things.  

TPL is a lot easier to measure too, especially when so many different people are doing all the heavy lifting for us.   The labor dept.'s got their CPI for buyer's prices, and the PPI for sellers, LCI for employers, and the BEA's got the GDP deflator for everyone's prices, and on and on.  Let me know if you have a good data base on either IOTD or "true inflation".

[1rudeboy]

It's pointless to discuss an issue with someone who cannot distinguish between legal and illegal activity.